V 


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SOUTHERN   BRANCH 

UNIVERSITY  OF  r  ^NIA 

LI  BRA  K  I 

LOS  ANGELES.  CALlF 


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RETAIL    BUYING 


HARPER'S 
RETAIL    BUSINESS    SERIES 

Edited  by  John  B.  Swinney,  lecturer  on  merchandizing,  New 
York  University  School  of  Commerce  Finance  and 
Accounts;  author  of  "Merchandizing,  Wholesale  and 
Retail;    formerly  with  John  Wanamaker,  New  York. 

RETAIL  SELLING.  A  Guide  to  the  Beat  Modern  Practices. 
By  Jambs  W.  Fisk,  sales-manager  of  the  retail  service 
and  business  systems  department  of  the  Associated 
Advertising  Clubs  of  the  World. 

RETAIL  BUYING.  Modern  Principles  and  Practice.  By 
Clifton  C.  Field,  formerly  with  Marshall  Field  &  Co., 
of  Chicago,  and  James  McCreery  &  Co.,  of  New  York, 
recently  instructor  in  merchandizing,  University  of 
Wisconsin. 

(In  Preparation) 
RETAIL  ORGANIZATION  AND  MANAGEMENT.  By 
Harrison  McJohnston,  assistant  professor,  the  School 
of  Commerce,  University  of  Illinois;  formerly  in  charge 
of  dealer  co-operation,  Butler  Brothers,  Chicago,  and 
Bometime  merchandizing  editor  System  Magazine. 


HARPER  &  BROTHERS,  NEW  YORK 


RETAIL   BUYING 

MODERN    PRINCIPLES    AND    PRACTICE 


BY 

CLIFTON    C.   FIELD 

FORMERLY  WITH  MARSHALL  FIELD   &  CO.,  OF    CHICAGO,  AND    JAMES 

MCCREERY  Sk  CO.,  OF  NEW   YORK,  RECENTLY  INSTRUCTOR  IN 

MERCHANDIZING,    UNIVERSITY    OF    WISCONSIN 


HARPER   &   BROTHERS    PUBLISHERS 

NEW     YORK     AND     LONDON 


^OBTT 


Retail  Buying 


Copyright,   191 7,   by   Harper  &    Brothers 

Printed  in  the  United  States  of  America 

Published    July,      1917 


\  ^b    • 


CONTENTS 

PART  I.  THE  MERCHANT  AS  A  BUYER 

FAOB 

Chapter  I.    The  Buyer  and  His  Qualifications      ....      3 
The  Merchant  as  Buyer — Fundamental  Buying  Methods — 
Know    Competition — Selling    Prices — Market    Merchandise, 
Methods,  etc. — The  Shoe-dealer's  Discovery. 

PART   II.     MERCHANDISE 

Chapter  II.    Sources  of  Merchandise 15 

Distribution — Manufacturers  and  Jobbers — Buying  Exchange 
— Salesmen — Mailway — Bankrupt  Sales — Visiting  the  Mar- 
ket— Buying  Syndicate. 

Chapter  III.     Types  of  Merchandise 29 

Branded  Merchandise — Value  of  the  Manufacturer's  Name — 
Manufacturer's  Aids — Differences  in  Profits — Stock  Turns — 
Private  and  Novelty  Brands — Exclusive  Agencies. 

PART   III.     BUYING   PRACTICE 

Chapter  IV.    The  Merchandizing  Plan 43 

Get  the  Basic  Facts — Merchandizing  Plans  and  Policies — 
Visiting  the  Markets — Sizing  up  the  Markets. 

Chapter  V.    The  Steps  in  Buying 54 

The  Buying  Process — Subdivision  of  Steps — Selection  of 
Qualities — Prices  and  Deliveries — Quantity  Prices,  Free  Deals, 
and  Extra  Discounts — Clearance  Prices — Advance  Buying — 
Cancellations  and  Returns— Allowing  the  Salesman  to  Buy 
Your  Business. 


CONTENTS 

PAoe 

Chapter  VI.     Determining  Qualities 67 

Importance  of  Ability  to  Judge  Quality — Textiles — Cotton — 
Wool — Silk. — Linen — Mercerized  Cotton — Quality  of  Fiber 
— Yarns  and  Fabric — Counts — Furs  of  Different  Kinds  and 
Their  Grades — Wearing  Quality — Buying  Furs — Groceries 
— Canned  Goods — Tests  for  Other  Lines. 

Chapter  VII.    Buying  for  Special  Sales  and  Holidays  .    .      89 
Clubbing   the   Salesman — "Jobs"    Samples — Competitor's 
Offers — Leaders  for  Clearance  Sales —Special  Requests — 
Holiday  Buying. 

Chapter  VIII.     Buying  to  Meet  Competition 97 

"Friend"  Competitor — Advantage  of  Independent  Over 
Chain  Stores — Mail-order  Competition — Retailer's  Advan- 
tage Over  Mail-order  House. 

Chapter  IX.    Determining  Prices  and  Profits      ....     109 

Profit — Know  Your  Costs — Gross  and  Net  Profit — Cost  or 
Selling  Price — Figuring  Profit — Pricing  Merchandise — 
Figuring  Percentage  of  Mark-up. 


PART  IV.    STOCK  SYSTEMS 

Chapter  X.    The  Turnover 123 

Turnover — How  Fast  Twenty  Grocery-stores  Turn  Their 
Stocks — Methods  of  Figuring  Stock  Turns — Stock  Turns 
in  Department  Stores — Merchandise  Stock  Turn — How 
Computations  Are  Made — Capital  Turns — Computing 
Capital  Turns — To  Find  Average  Stocks. 

Chapter  XI.    The  Inventory 138 

Inaccurate  Inventories  Cause  Many  Failures — WTiat  Is 
Merchandise  Worth? — Preparing  for  the  Inventory — Pre- 
liminary Work — Shifting  Stocks  and  Examining  Goods — 
Numbering  in  Advance — Changes  After  First  Count — 
Taking  Stock  while  Business  Goes  On — Inventory — Sub- 
divisions— All  Sheets  Followed  Up — Page  Totals — Annual, 
Semiannual,  or  Monthly  Inventory — Continuous  Inventory' 
— Perpetual  Inventory  System. 


CONTENTS 

PAOK 

Chapter  XII.    Stock-keeping  and  Stock-recording    .    .    .    154 

Stock-keeping — Store  Fixtures — Selling  Value  of  Attractive 
Fixtures — Fixtures  for  the  Up-stairs  Store — No-counter 
Idea  —  Store  Arrangement — Receiving-room — Sampling — 
Open  Stock — Arranging  and  Handling  Open  Stock — Fill- 
ing In  Open  Stock — Old  Stock — Handling  Old  Shoe  Stock — 
Keeping  Fixtures  in  Good  Condition — Arranging  Counter 
Displays  —  Cartons  —  Stock  -  recording  —  Stock  -  recording 
Systems. 

Chapter  XIII.    Instruction  to  Salespeople 173 

Meetings,  Printed  Information — Bulletin-boards — Personal 
Attention — Teaching  Merchandise  Points. 

Chapter  XIV.  Co-operation  in  Advertising  and  Displays  192 
Buyer's  Responsibility  in  Advertising — Display  Work — 
The  Trimmer — Value  of  Windows — Artist's  Windows  vs. 
Merchandizing  Windows  —  Backgrounds  —  Flooring  — 
Amount  of  Merchandise  to  Be  Shown — Time — Fixtures — 
Show-cards. 

Chapter  XV.    The  Buyer  as  a  Merchant 211 

Functions  of  the  Buyer — As  a  Merchant — As  Salesman — 
As  Sales-manager — As  Merchandizer. 

Index 215 


EDITOR'S    INTRODUCTION 

This  volume  on  Retail  Buying  provides  a  simple  and 
readable  explanation  of  what  is  best  to-day  in  buying  prin- 
ciples and  practice.  The  author  has  built  around  his  own 
experience  as  a  buyer  and  as  a  student  and  teacher  of  buy- 
ing, and  he  has  drawn  upon  the  experience  and  the  investi- 
gations of  successful  merchandizers  in  every  line  of  retail- 
ing. Therefore,  the  book  will  be  found  to  cover  the  subject 
briefly  and  concisely  but  yet  completely. 

It  is  only  within  very  recent  years  that  such  a  work  has 
been  possible.  In  the  "good  old  days"  buying  was  done  by 
"  rule-of-thumb  "  methods.  A  science  of  buying  was  as  un- 
known as  a  science  of  retailing.  In  fact  it  is  only  by  de- 
veloping buying  methods  along  scientific  lines,  and  by  work- 
ing out  methods  in  the  other  divisions  of  retailing  in  the 
same  way,  that  we  can  hope  to  put  storekeeping  on  a 
rational  basis.  The  department  store  and  the  chain  store 
have  been  doing  pioneer  work  along  this  line,  and  to  them 
and  to  a  small  band  of  scattered  retailers  of  other  types 
must  be  given  much  of  the  credit.  For  it  is  generally  known 
that  a  large  part  of  their  success  is  due  to  their  development 
of  scientific  buying  principles  and  practices. 

But  the  difficulty  has  been  to  adapt  the  methods  of  the 
larger  stores,  and  particularly  those  in  which  it  seems  possi- 
ble to  install  complete  systems,  to  the  needs  of  the  average 
retailer.  A  system  is  of  no  value  if  it  caimot  be  used.  Mr. 
Field,  in  the  volume,  has  kept  constantly  in  mind  the  con- 


EDITOR'S    INTRODUCTION 

ditions  under  which  the  usual  retailer  works,  and  accord- 
ingly has  advocated  nothing  which  has  not  already  been 
found  practical  under  average  conditions.  Furthermore, 
he  has  adapted  his  discussion  of  each  subject  to  the  needs 
of  the  retailer  in  each  of  the  usual  types  of  retailing,  and 
has  given  illustrations  to  show  how  the  method  has  already 
been  used  successfully  by  each.  It  is  not  a  question  whether 
his  methods  will  work,  for  they  are  already  in  use,  either 
in  his  own  store  or  in  that  of  some  other  successful  merchant. 

The  author  wishes  me  to  express  his  debt  of  gratitude  to 
all  who,  during  the  past  decade,  have  assisted  him  in  his 
buying  problems,  as  well  as  in  his  study  and  teaching  of 
the  subject;  and  particularly  to  Prof.  Ralph  Starr  Butler, 
of  the  University  of  Wisconsin;  Paul  H.  Nystrom,  recently 
Associate  Professor  at  the  University  of  Minnesota;  Herbert 
P.  Sheets,  manager  of  the  Buying  and  Price  Bureau,  Na- 
tional Retail  Hardware  Association;  Lew  Hahn,  Editor  of 
Women's  Wear;  Harry  Dougherty,  Shoe  Buyer,  John  Wana- 
maker's;  and  Earl  D.  Eddy,  Sales-manager,  Coast  Products 
Company,  St.  Louis. 

To  these,  and  to  many  others,  several  of  whom  have  read 
the  book  in  manuscript,  both  author  and  editor  wish  to 
express  deep  obligation.  It  is  hoped  in  return  that  the  book 
will  prove  as  practical  and  as  useful  as  its  friends  anticipate, 
both  to  those  actually  in  retail  business  and  to  students  of 
business  methods.  And  it  should  be  found  so,  as  it  is  en- 
tirely the  experience  of  successful  merchants. 

John  B.  Swinney. 

New  York,  1916. 


THE    BUYER'S    CREED* 

I  BELIEVE  in  nothing — neither  people  nor  things; 
for  things  are  not  always  what  they  seem,  and  people 
never  are.  I  either  know  or  I  don't  know;  and 
what  I  don't  know  is  numbered  among  matters  not 
yet  discovered. 

I  know  that  every  man  has  an  ax  to  grind;  that 
he  has  a  chip  on  his  shoulder;  that  he  is  always  look- 
ing for  a  fight;  that  he  is  loaded  for  bear,  and  only 
wants  the  shadow  of  an  opportunity  to  "shoot" 
himself  off. 

I  know  that  every  man  is  after  me;  he  dogs 
my  trail  like  a  bloodhound;  he  camps  on  my 
door-step  like  the  fates  of  old;  he  plots  my  ruin  by 
day  and  by  night;  he  pursues  me  indomitably,  in- 
defatigably,  always. 

I  know  that  every  man  has  the  best  proposition 
on  earth ;  that  his  firm  is  an  originator,  while  others 
follow;  that  I  am  the  only  one  "too  blind  to  see" 
the  opportunity  I  am  offered. 

I  know  that  I  am  a  "tight-wad,"  a  "bonehead," 
a  "fossil";    I  know  that  I  am  everything  from 

*  Reprinted  by  special  permission. 


THE    BUYER'S    CREED 

A  to  Z  and  back  again;  that  I  am  impossible,  a 
"grouch,"  a  "joy-killer,"  a  "back  number";  I 
know  that  I  am  all  this  and  more,  for  I  am  told  it 
daily. 


Yet- 


I  know  that  I  am  successful;  I  know  that  my 
business  increases  year  after  year;  that  in  spite  of 
the  cries  and  warnings  of  the  alarmists  I  am  steadily 
pushing  ahead;  that  while  others  are  dropping 
by  the  wayside  I  am  approaching  the  goal  of  all 
of  us. 

I  know  that  the  best  proposition  on  earth,  ac- 
cording to  one  man's  view,  may  be  the  worst  in  the 
other  man's  estimation,  and  that  my  ends  are  best 
served  by  discounting  both. 

I  know  that  I  am  "hoeing  my  own  row,"  that 
I  am  planting  my  own  seeds,  that  I  am  doing 
the  weeding  while  the  crop  grows,  and  that  when 
the  harvest  is  ripe  I  must  stand  ready  to  gather  a 
success  or  a  failure. 

I  also  know  that  the  successes  I  make  are  be- 
cause of  the  other  fellow's  good  judgment  (?)  and 
that  the  failures  come  from  my  own  wilfulness  (?). 

I  KNOW  that  I  don't  know  it  all. 

I  DON'T  KNOW  everything. 

—From  The  Decorative  Furnisher. 


PART    I 
THE  MERCHANT  AS  A  BUYER 


RETAIL   BUYING 


THE   BUYER  AND  HIS   QUALIFICATIONS 

The  Merchant  as  a  Buyer.  Merchandizing  has  been  de- 
fined as  the  buying  and  selUng  of  such  goods  as  are  needed 
or  desired  by  the  shopping  community,  and  in  such  quan- 
tities as  to  take  care  of  the  needs.  Merchandise  is  worth 
only  what  it  will  bring  under  competitive  selling  at  the  time 
of  its  sale,  and  therefore  it  must  be  obtained  at  a  price  which 
will  allow  a  profit  to  the  merchant.  Considering  the  fact 
that  a  small  profit  with  a  quick  turnover  of  the  investment 
in  merchandise  will  bring  a  bigger  return  than  the  higher 
profit  and  slower  turnover,  stocks  must  be  kept  down  to  a 
minimum  consistent  with  taking  care  of  all  the  usual  needs 
of  the  store's  customers. 

Consequently  good  merchandizing  begins  with  good  buy- 
ing. The  old  adage  is,  "Goods  well  bought  are  half  sold."  It 
is  quite  certain  that  if  goods  are  not  wxll  bought  the  problem 
of  selling  increases  with  the  carelessness  or  inefficiency  of 
buying.  No  salesman  can  get  enthusiastic  over  merchandise 
which  he  knows  to  be  in  any  respect  inferior,  and  any  mer- 
chant who  asks  his  salespeople  to  get  full  prices  for  inferior 
goods  is  responsible  for  the  weakening  of  the  moral  char- 


RETAIL   BUYING 

acter  of  his  employees.  On  the  other  hand,  well-bought 
merchandise  is  a  joy  to  every  one  connected  with  the  store, 
from  the  proprietor  to  the  delivery-boy.  Each  one  feels 
that  in  contributing  to  its  sale  he  is  doing  a  real  service  to 
the  one  who  purchases  it.  The  necessity  for  good  buying 
is  the  beginning  of  the  merchant's  obligation  to  the  com- 
munity he  serves. 

Merchants  everywhere  realize  this.  Since  the  beginning 
of  retailing  with  the  itinerant  merchant  of  the  Roman 
Empire,  the  one  who  sells  has  been  first  of  all  a  good  buyer; 
else  he  is  doomed  to  failure  before  he  begins.  In  America 
most  country  retailers  have  first  served  a  long  apprentice- 
ship, during  which  they  have  obtained  some  little  knowledge 
of  their  line  of  merchandise,  and  some  idea  of  the  principles 
of  buying. 

Those  who  became  most  proficient  as  buyers  grew  and 
prospered  in  business,  but  always  they  have  retained  their 
interest  in  the  buying  end  of  the  business.  Marshall  Field,  of 
Chicago,  A.  T.  Stewart  and  Benjamin  Altman,  of  New  York, 
T.  Eaton,  of  Montreal — each  was  first  and  last  a  good  buyer. 

Buying  Methods  Fundamental  to  All  Retailing.  It 
doesn't  matter  whether  the  buying  is  done  entirely  by  the 
proprietor,  as  in  a  small  store,  or  by  a  staff  of  a  hundred  or 
more  buyers,  as  in  a  large  city  department  store;  for  the 
methods  of  good  buying  are  fundamental  to  a  retail  store  of 
any  size.  The  only  reason  it  is  difficult  to  point  to  many 
cases  of  small  stores  that  are  following  modern  merchandizing 
methods  is  due  to  the  fact  that  once  the  small  store  begins 
to  use  such  methods  it  grows  into  a  large  store  with  amazing 
rapidity.  John  Wanamaker  developed  his  present  methods 
while  a  small  merchant;  and  the  same  is  true  of  every  other 
"merchant  prince"  to-day. 

Personal  Qualifications.  To  name  the  personal  char- 
acteristics of  the  successful  buyer  would  be  to  give  those 

4 


BUYER   AND    HIS   QUALIFICATIONS 

qualities  which  make  a  successful  business  man  in  any  line. 
Ambition  and  self-confidence  urge  a  man  to  make  the  most 
of  the  opportunities  which  he  has,  and  help  to  keep  him  out 
of  the  rut  of  doing  business  just  as  he  did  last  year  and  the 
year  before  that.  Tact  and  judgment  give  him  an  ability 
to  deal  with  men  and  to  win  their  admiration.  Loyalty  and 
integrity  give  a  man  friends  and  associates  who  will  support 
him  in  his  business  enterprises.  But,  over  and  above  all, 
stands  the  ability  to  get  at  the  facts  of  his  particular  business 
and  the  conditions  under  which  he  is  carrying  on  that  busi- 
ness. It  is  to  the  buyer  who  knows  that  comes  a  growing 
trade.  The  purpose  of  the  remaining  chapters  in  this  volume 
is  to  show  how  the  buyer  may  obtain  the  training  necessary 
to  his  success.  This  first  chapter  also  serves  as  an  introduc- 
tion to  these  succeeding  chapters,  and  as  an  outline  of  topics 
to  be  discussed  in  detail  in  them. 

Know  the  Local  Needs.  In  order  to  serve  any  commodity 
successfully  the  buyer  must  know  the  needs  of  the  community 
to  be  served.  A  progressive  dry-goods  buyer  in  a  small 
town,  realizing  the  need  for  a  systematic  study  of  the  situ- 
ation, started  to  catalogue  the  people  on  whom  he  might 
be  expected  to  draw  for  trade.  He  listed  the  population 
not  only  of  his  own  town,  but  that  of  neighboring  towns  in 
his  trading  territory.  He  learned  the  proportion  of  men, 
women,  and  children  in  the  population  of  that  trading 
territory.  He  knew  from  his  own  experience  the  buying 
capacity  of  those  who  came  to  his  store,  and  from  this  he 
judged  that  of  the  others.  His  own  store  records  gave  him  a 
knowledge  of  the  class  of  goods  which  these  people  would  buy. 
With  these  definite  statistics  compiled  from  the  result  of  his 
survey,  he  was  ready  to  set  about  answering  the  question  as 
to  how  he  could  buy  for  his  clientele  to  better  advantage. 

Know  Your  Competition.     Every  buyer  faces  the  fact 

that  he  is  not  the  only  merchant  in  the  field.     His  selling 

5 


RETAIL   BUYING 

prices  are  largely  regulated  by  competition.  So  he  must 
buy  to  protect  his  profits.  What  the  other  stores  in  town 
are  doing  is  just  as  important  to  him  as  knowing  what  he 
is  doing  in  his  own  store.  These  are  questions  he  must  ask 
himself:  "Is  their  line  more  complete  than  mine,  and  are 
they  selling  it  profitably?  Are  they  offering  goods  of  equal 
quality  at  lower  prices?  If  they  are  doing  this  profitably, 
why  can't  I?  If  they  are  quoting  lower  prices  on  certain 
lines,  what  can  I  offer  as  'leaders'  that  will  attract  pur- 
chases and  yet  enable  me  to  maintain  my  prices  on  the 
standard  goods?"  Such  questions  as  these  must  be  answered 
by  every  merchant  before  he  can  operate  his  store  success- 
fully. In  fact,  the  majority  of  successful  storekeepers  have 
answered  them  even  though  they  may  not  realize  the  fact. 

Then  there  is  the  competition  which  comes  from  the  buyer's 
trading  territory.  Competition  from  a  distance  must  also 
be  reckoned  with,  and  the  buyer  must  know  broadly  who 
his  competitors  are  in  this  field,  the  character  and  nature 
of  their  competition,  and  its  possible  effect  on  him.  Why  is 
the  grocery-store  in  the  next  town  getting  the  trade  which 
might  come  to  him?  How  much  business  are  the  mail-order 
houses  getting  from  his  territory?  What  are  the  prices  which 
are  helping  to  draw  money-orders  through  the  mail?  A 
careful  study  of  such  a  condition  will  soon  reveal  to  the  buyer 
what  goods  are  most  frequently  ordered  from  mail-order 
houses.  The  buyer  who  looks  through  the  mail-order  cata- 
logue circulating  in  his  trading  territory,  and  carefully  studies 
the  merchandise  offered,  will  be  in  a  better  position  to  make 
up  stock  orders  for  each  one.  He  will  then  know  what  goods 
he  ought  to  carry  in  order  to  meet  this  competition  success- 
fully. In  fact,  the  whole  problem  of  competition  is  based 
on  knowing  very  definitely  what  is  wanted,  and  on  aiming 
to  have  a  stock  that  will  cover  practically  the  entire  usual 
wants  of  the  community.     The  mail-order  catalogues  will 

6 


BUYER   AND    HIS   QUALIFICATIONS 

give  the  buyer  a  very  good  idea  of  what  merchandise  is 
actually  wanted  by  his  community. 

Know  the  Selling  Prices.  Local  papers,  circulars,  window 
displays  in  other  stores,  and  visits  to  them,  give  to  the  buyer 
a  knowledge  of  the  prices  which  are  current  in  his  locality. 
Wherever  a  store  is  carrying  a  similar  line  of  goods,  there 
the  merchant  will  find  information  which  will  help  him  in 
his  own  price-setting.  A  hardware  buyer  who  persistently 
kept  himself  informed  in  this  way  said:  "It  helps  me,  be- 
cause I  always  try  to  give  better  merchandise  at  the  same 
price,  or  the  same  lines  my  competitors  offer  at  cheaper  prices. 
I  can't  always  do  it,  but  I  get  the  business  in  the  long  run." 

Know  the  Buying  Market.  The  buyer's  knowledge  of 
the  buying  market  should  be  wide,  specific,  and  detailed  as 
possible.  He  should  know  not  only  the  manufacturers, 
jobbers,  manufacturers'  agents,  brokers,  co-operative  job- 
bers, and  all  the  other  supply  channels,  but  he  should  under- 
stand as  well  what  reliance  he  can  put  on  each.  Where  are 
the  highest  grade  qualities  obtainable?  Where  are  the  cheap 
lines  to  be  found?  How  do  the  various  firms  stand  on  de- 
liveries? Wliich  ones  can  be  trusted  for  filling  emergency 
orders?  The  buyer  who  does  not  know  his  buying  field, 
and  the  current  prices  in  it,  is  deficient  in  one  of  the  most 
obvious  requisites  of  good  buying. 

Know  the  Merchandise.  A  technical  knowledge  of  the 
raw  materials  which  are  used  in  the  making  of  his  commodi- 
ties and  familiarity  with  the  process  of  manufacture  give 
the  buyer  a  basis  by  which  he  may  judge  the  finished  product. 
To  know  the  latest  improvements  in  manufacturing  methods 
and  the  manufacturers  who  are  progressive  enough  to  in- 
stall them  gives  an  almost  unfailing  guide  for  bu^nng  quality 
goods  at  cheaper  prices.  A  jewelry  buyer  once  remarked, 
**  Find  out  which  factory  takes  the  greatest  pains  in  choosing 

its  raw  materials,  and  which  is  at  the  same  time  most  pro- 

7 


RETAIL   BUYING 

gressive  in  the  application  of  improved  processes  for  making 
the  goods,  and  then  go  to  that  company." 

Again,  knowing  the  raw  materials  which  go  into  the  com- 
modity, the  buyer  is  in  a  better  position  to  watch  the  market 
intelligently.  The  shoe  buyer  keeps  in  touch  with  the  market 
in  raw  hides  and  leather,  while  the  grocer  studies  the  wheat 
market  and  buys  flour  by  carload  lots  when  a  rising  market 
is  certain.  Records  and  reports  of  market  conditions  are 
to  be  found  on  the  financial  page  of  the  daily  papers  and  in 
financial  and  trade  journals.  In  this  way  the  buyers  in 
every  line  are  often  able  to  foretell  a  rise  in  price,  and  to 
buy  to  advantage  because  of  their  judgment  as  to  probable 
future  fluctuations  in  the  wholesale  price  of  the  manufact- 
ured commodity  in  which  they  are  interested. 

Know  Marketing  Methods.  To  know  the  most  direct 
or  advantageous  methods  of  bringing  his  merchandise  favor- 
ably before  the  public  is  essential  to  the  buyer.  For  it  must 
be  remembered  that  buying  and  selling  go  hand  in  hand, 
and  in  nearly  every  store  the  responsibility  for  sales  centers 
in  the  one  who  buys  each  line  of  goods.  Just  how  far  does 
it  pay  to  advertise?  What  medium  is  best — local  papers, 
circulars,  or  letters?  A  study  of  what  has  been  used  suc- 
cessfully by  other  merchants  and  personal  experiment  will 
offer  the  best  guide  to  the  determination  of  his  policy.  The 
question  of  store  arrangement  and  merchandise  display  is 
of  the  greatest  importance.  Many  sales  are  lost  because  the 
goods  are  hidden  away  in  stock-rooms  and  on  shelves,  or 
because  they  are  piled  carelessly  upon  the  counters,  and  in  a 
way  to  show  them  at  their  worst  rather  than  best  advantage. 

Know  the  Best  System  of  Store  Records.  It  goes  with- 
out saying  that  the  buyer  who  is  systematic  about  his  busi- 
ness can  buy  more  intelligently.  A  thorough  though  simple 
system  of  invoicing,  stock-keeping,  inventory,  and  record 
of  demands  is  always  essential.    The  buyer  who  devises  and 

8 


BUYER   AND    HIS   QUALIFICATIONS 

then  uses  a  system  that  is  capable  of  expanding  with  the 
business  is  laying  his  foundation  for  future  progress.  Fre- 
quently buyers  figure  lines  as  profitable  when  they  really 
are  not.  A  buyer  of  men's  clothing  worked  up  a  mail-order 
business  in  the  surrounding  territory,  and  at  the  close  of  the 
season  he  was  pleased  to  find  that  only  suits  of  a  certain 
number  remained  out  of  an  entire  line.  He  felt  he  had  made 
good  profits,  even  though  it  should  prove  necessary  to  sell  the 
remaining  fifteen  suits  at  a  loss.  When  he  figured  out  exactly 
the  total  expense,  taking  into  consideration  the  cost  of  ser- 
vice, and  of  storage,  and  all  elements  entering  into  the  trans- 
action, he  found  that  the  profit  on  the  suits  sold  during  the 
season  would  not  cover  the  actual  total  expenses.  Many 
retailers  are  in  the  same  predicament.  They  figure  they  have 
made  good  profits  and  yet  they  are  puzzled  at  their  inability 
to  find  them.  A  thorough  study  of  the  business  always  shows 
that  the  system  of  accounting  and  cost-finding  was  faulty,  and 
that  the  profits  were  fictitious.  It  is  one  of  the  first  duties  of 
the  buyer  to  see  that  the  record  system  of  the  store  offers 
a  complete  record  for  his  guidance  in  merchandizing. 

The  Shoe  Dealer's  Discovery.  This  point  cannot  be 
illustrated  better  than  by  the  experience  of  a  certain 
shoe-dealer  in  a  small  city.  He  had  just  finished  a 
three  weeks'  successful  bargain  sale,  and  was  sitting  at 
his  desk  looking  over  a  large  pile  of  bills  and  statements. 
He  knew  that  other  statements,  including  one  from  the 
local  newspapers  for  use  of  large  advertising  space,  would 
probably  be  in  that  morning's  mail,  as  well  as  bills  for 
outdoor  posters  and  special  window  signs.  As  the  sale 
had  been  a  lively  one,  and  the  bulk  of  the  store's  odds  and 
ends  had  been  disposed  of  at  a  trifle  above  original  invoice 
cost,  he  had  no  special  misgivings  at  the  prospect  of  receiv- 
ing and  paying  the  bills  for  the  special  advertising.    He  had 

a  good  bank  account.    He  handled  well-known  reliable  brands 

9 


RETAIL    BUYING 

of  shoes,  and  his  stores  enjoyed  a  steady  patronage  through- 
out the  year.  But  as  he  went  over  his  bills,  down  toward 
the  bottom  of  the  pile,  he  came  to  a  few  things  he  had  not 
expected.  One  was  a  note  from  his  student  agent  at  the 
college  four  miles  from  town,  asking  for  the  $4.50  commission 
for  selling  nine  pairs  of  shoes  to  fellow-undergraduates.  A 
printed  notice  reminded  him  politely  that  the  gas  bill  for 
his  store  was  overdue.  A  letter  from  a  distant  large  city 
informed  him  that  for  twenty  dollars  per  week  the  writer 
would  accept  the  position  of  window-trimmer  and  would 
wait  on  customers  "at  odd  moments."  The  last  thing  in 
this  merchant's  pile  of  Monday  morning  mail  was  a  forgotten 
bill  of  fifty-eight  dollars  for  refinishing  the  settees  and  pro- 
viding new  fitting-stools  for  the  store. 

He  studied  the  window-trimmer's  letter  and  the  fifty- 
eight-dollar  statement  for  a  few  moments,  then  took  another 
glance  at  the  other  bills  and  the  manufacturer's  invoice  of 
goods  on  the  way.  He  made  a  few  hesitating  figures  on  a 
scratch-block,  then  clasped  his  hands  behind  his  head  and 
began  to  think  out  loud.  "How  much  does  it  cost  me  to  do 
business,  anyway?  What  do  I  really  get  out  of  it?  What  per 
cent,  do  I  make  on  my  investments?  Where  do  I  stand?  I 
wonder  how  last  month's  expense  compares  with  a  year 
ago?  What  were  my  sales  last  month?  That  bargain  sale 
must  have  helped."  He  then  asked  the  cashier,  "What  have 
you  got  in  the  way  of  records  that  you  can  refer  to  quickly 
and  tell  me  exactly  what  our  sales  and  expenses  were  last 
month  and  a  year  ago  last  month?"  The  reply  was:  "We 
have  the  total  we  paid  out  last  month,  and  you  know  we 
have  all  the  slips  for  the  sales,  but  we  don't  add  them  up. 
It  will  be  a  pretty  big  job  to  go  through  last  year's  books 
and  all  that  big  bunch  of  sales-slips  down-stairs  and  figure 
up  the  expenses  and  sales.  What  is  it  yoxi  want  this  for? 
Is  anything  wrong?    We  are  practically  up-to-date  on  our 

10 


BUYER   AND   HIS   QUALIFICATIONS 

bills  and  collections,  and  the  store  bank  account  is  as  much 
as  usual."  "No,  nothing  is  wrong — so  far  as  you're  con- 
cerned." With  which  remark  the  shoe-merchant  resumed  his 
train  of  thought,  and  continued  it  for  a  good  share  of  the 
forenoon.  "What  I,  or  any  other  shoe-dealer  who  expects 
to  be  successful,  ought  to  know,"  he  said  to  himself,  "is 
how  much  I  am  paying  out  a  month  for  all  expenses,  what  the 
different  items  are,  what  I  actually  net  from  the  sale  of  goods, 
what  percentage  of  gross  and  net  profit  I  make — and  then 
compare  each  month's  showing  for  every  different  item. 
How  do  I  know  what  effect  a  good  or  poorly  advertised 
bargain  sale  has  on  my  season's  business?  How  do  I  know 
how  much  shoe  polish  and  laces  I  can  afford  to  give  away? 
How  do  I  know  whether  we  waste  electricity?  How  do  I 
know  whether  I  can  afford  10  or  12  per  cent,  commission  to 
my  college  agent,  or  twenty  dollars  a  week  to  a  window- 
trimmer?     Me  for  the  big  find-out!" 

The  Shoe  Dealer's  Investigation  and  the  Result.  Where- 
upon this  merchant  proceeded  to  make  life  miserable 
for  his  cashier  all  the  rest  of  that  day  and  a  part  of  the 
next,  in  digging  up  back  invoices,  jobbing  price-lists,  bills, 
and  statements  of  all  kinds,  records  of  sales,  commissions, 
discounts,  rebates,  and  other  data  which  had  been  slumber- 
ing, unused,  in  the  store's  filing-cabinet.  He  classified  his 
stock-purchases,  sales,  and  all  expenses  for  store  main- 
tenance. He  reduced  these  to  a  simple  monthly  record-sheet 
which  could  be  filled  out  in  about  an  hour's  time  at  the  end 
of  each  month.  He  investigated  his  past  operating  expendi- 
tures sufficiently  to  determine  a  normal  figure  for  each  kind 
of  expense  each  month,  and  thus  obtained  an  accurate  basis 
of  comparison  with  actual  future  expenses.  His  new  system 
enabled  him  to  determine  exactly  what  grades  of  goods  he 
should  push,  and  to  watch  and  prevent  unnecessary  and  un- 
profitable operating  expenses.    It  showed  him  at  a  glance 

11 


RETAIL   BUYING 

what  his  total  investment  was  and  what  net  profit  he  was 
making  from  month  to  month.  It  developed  him  in  fifteen 
months  from  an  average  easy-going  dealer  into  one  of  the 
keenest,  most  successful  retail  shoe-merchants  in  his  State. 
And  he  did  it  all  unaided.  To-day  he  could  get  from  any 
one  of  various  sources  at  an  expense  of  a  few  cents  a  com- 
plete system  of  accounting  and  cost-finding  for  his  store, 
with  complete  suggestions  for  its  installation. 

Know  General  Business  Conditions.  A  knowledge  of 
market  conditions  outside  of  his  own  line  will  indicate  to 
the  buyer  in  a  measure,  at  least,  what  sort  of  a  year  is  ahead. 
An  ability  to  intelligently  analyze  the  financial  page  of  a 
standard  daily  paper  or  of  a  financial  journal  will  help  him 
to  forecast  conditions  and  know  how  his  own  interests  will 
be  affected.  Rates  of  exchange,  reports  of  clearing-houses, 
rates  of  interest,  the  movements  of  such  commodities  as 
iron,  lumber,  steel,  the  crops  of  the  country,  whether  good 
or  bad,  all  show  the  condition  of  business  in  general.  Special 
attention  to  those  industries  on  which  the  local  market  de- 
pends is  of  the  utmost  importance.  The  manufacturing 
enterprises  of  his  community  may  be  directly  affected  by 
these  larger  movements,  and  the  buying  capacity  of  his 
people  at  once  shows  the  effect. 

Know  Men.  Because  much  of  a  buyer's  success  is  in 
proportion  to  his  knowledge  of  conditions  within  and  without 
his  store,  he  should  appreciate  from  the  first  the  real  ad- 
vantage to  him  in  cultivating  an  ability  to  "mix."  Upon 
his  knowledge  of  human  nature  will  depend  largely  his 
ability  to  handle  his  employees  and  to  meet  salesmen  with 
whom  he  is  matching  wits  every  day.  But  still  more  im- 
portant is  the  buyer's  need  to  keep  in  close  touch  with  the 
customers  of  his  store.  From  such  association  he  learns  of 
their  wants,  their  tastes,  their  capacity  for  purchasing  and 

for  paying  for  the  things  he  has  to  offer. 

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Subject  of  Buying 

Retail  Hardware  Stores 
H.  P.  Sheets 

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Good  Buying!  ^  r      i  bb 


PART    II 
MERCHANDISE 


II 

SOURCES  OF  MERCHANDISE 

The  Plan  of  Distribution.  The  process  of  distributing 
goods  is  like  a  chain,  with  the  manufacturer  or  farmer  at  one 
end  and  the  consumer  at  the  other.  The  intervening  links 
are  the  middlemen — wholesalers  and  retailers.  The  original 
chain  of  distribution  necessitated  that  the  merchandise  pass 
through  the  whole  channel  of  trade — i.e.,  from  manufacturer, 
conmiission  merchant,  jobber,  wholesaler,  retailer  to  con- 
sumer. But  the  rising  costs  of  merchandise,  together  with 
growing  intensity  of  competition,  has  had  a  tendency  to 
eliminate  some  of  the  middlemen.  Advertising  has  also  been 
a  leading  factor  in  drawing  the  manufacturer  and  the  retailer 
closer  together. 

Manufacturers.  The  manufacturer's  function  is  to  alter 
the  form  of  the  commodities  bought  and  sold  so  as  to  pre- 
pare them  for  consumption.  He  buys  raw  material  and  makes 
up  the  commodity,  or  he  purchases  articles  already  manu- 
factured by  others  and  assembles  them  into  new  forms. 

Theoretically  the  manufacturer  should  be  able  to  sell  his 
goods  directly  to  the  retailer  at  a  lower  price  than  through 
jobbers.  At  first  glance  it  would  seem  that  the  jobber's 
work  in  handling  the  goods  is  simply  an  unnecessary  extra 
step  in  the  chain  of  distribution.  In  the  case  of  large  depart- 
ment stores  and  other  large  buyers,  this  is  undoubtedly  true. 

Such  stores  buy  direct  of  manufacturers  at  prices  as  low  as 

15 


RETAIL   BUYING 

the  jobber  is  able  to  obtain.  It  should  be  remembered, 
however,  that  in  such  instances  both  the  manufacturer  and 
the  retailer  incur  considerable  extra  expense  resulting  from 
the  elimination  of  the  jobber  and  the  jobber's  service.  In 
the  case  of  the  smaller  retailer  who  needs  goods  in  small 
lots,  the  jobber  service  is  greater  and  the  jobber  is  more 
necessary.  If  the  manufacturer  must  take  care  of  such 
retailers,  it  is  certain  he  must  increase  his  prices  corre- 
spondingly to  offset  the  added  expense  of  selling  to  them. 
Therefore,  smaller  accounts  are  not  sought  by  manufact- 
urers. In  fact,  those  manufacturers  who  are  known  to  sell 
direct  to  the  retailer  do  so  only  on  condition  that  the  re- 
tailer buy  a  certain  specified  quantity  which  enables  the 
manufacturer  to  handle  profitably  the  account. 

Jobber.  To-day  the  terms  jobber  and  wholesaler  are 
practically  synonymous.  Originally,  the  jobber  made  a 
practice  of  dealing  in  jobs  and  broken  lots  of  merchandise, 
while  the  wholesaler  bought  fresh  lines  in  large  quantities, 
and  sold  them  in  suitable  quantities  to  meet  the  needs  of  the 
retailer  or  general  merchant.  We  shall  adopt  the  word 
jobber  because  it  is  shorter  and  more  commonly  used. 

The  jobber,  as  we  have  seen,  is  one  of  the  links  in  the  chain 
of  distribution.  He  buys  merchandise,  usually  in  large 
quantities,  and  at  a  gross  profit  of  from  3  to  15  per  cent., 
sometimes  reaching  20  per  cent.,  is  enabled  to  resell  to  the 
dealer  in  smaller  quantities  and  as  desired.  The  jobber 
thus  stands  between  the  manufacturer  and  the  retailer. 
He  is  able  to  gather  together  thousands  of  varied  commodi- 
ties, made  by  hundreds  of  different  manufacturers,  place 
the  merchandise  within  easy  reach  of  the  retailer,  parceling 
it  out  to  him  as  needed.  In  doing  so,  he  performs  a  real 
function  for  both  the  manufacturer  and  the  retailer.  Even 
though  some  of  the  large  manufacturing  interests  do  dis- 
tribute their  products  direct  to  the  retailer,  it  has  been 

16 


SOURCES   OP   MERCHANDISE 

necessary  for  them  to  establish  and  maintain  warehouses 
in  different  locahties  for  the  purpose  of  serving  the  retailer 
much  in  the  same  way  as  the  jobbers  otherwise  would. 

The  retailer,  outside  of  the  larger  city  department  stores, 
could  not  survive  without  the  aid  of  the  jobber.  Imagine 
the  corner  grocery,  with  its  five  hundred  or  more  kinds  of 
merchandise  in  stock,  attempting  to  buy  direct  from  the 
manufacturer.  At  least  fifty  manufacturers  are  represented 
in  the  average  stock,  and  most  of  the  merchandise  comes  in 
case  lots,  ranging  from  two  dozen  to  a  gross  each.  This 
retailer  would  have  enough  capital  to  purchase  only  a  small 
number  of  the  items  he  finds  it  necessary  to  carry  in  order 
to  do  business.  Buying  from  the  jobber  makes  it  possible 
for  this  corner  grocer,  as  well  as  for  the  larger  retailer,  to 
carry  a  well-assorted  stock  of  merchandise. 

Manufacturing  Jobber.  Like  the  manufacturer,  there 
are  many  jobbers  who  are  in  reality  manufacturers,  such  as 
Lehn  &  Fink,  Simmons  Hardware  Company,  etc.  This  class 
of  jobbers  usually  began  in  a  small  way  by  backing  manu- 
facturing plants  with  limited  outputs,  and  agreeing  to  take 
over  their  entire  output.  Thousands  of  grocery  jobbers 
own  canneries  throughout  the  fruit  and  vegetable  sections, 
and  their  own  brands  are  put  up  according  to  their  speci- 
fications so  as  to  meet  the  wants  of  their  own  particular  trade. 

The  retailer,  in  doing  business  with  them,  deals  just  as 
he  would  with  the  manufacturer.  He  must  take  the  mer- 
chandise as  it  is;  that  is,  no  changes  are  possible  in  either 
style  or  quality.  Many  of  the  advantages  to  be  gained  by 
dealing  directly  with  a  full-fledged  manufacturer  can  be 
secured  by  trading  with  a  manufacturing  jobber.  If  full 
case  lots  are  not  purchased,  the  retailer  can  have  this  man- 
ufacturing jobber  substitute  other  lines  from  his  regular 
jobbing  stock  to  make  up  a  full  shipment. 

The  Semi- Jobber.     Many  manufacturers  have  different 
2  17 


RETAIL    BUYING 

price-lists  for  the  retailer  and  the  jobber,  instead  of  using 
the  quantity  method  of  gauging  the  price.  Consequently, 
in  order  to  get  quantity  prices,  many  of  the  big  buyers  of 
merchandise  themselves  turn  jobber  and  make  a  practice 
of  selling  merchandise  to  smaller  dealers.  Thus  they  per- 
form the  functions  of  both  retailer  and  jobber,  at  a  gross 
profit  of  from  3  to  15  per  cent,  on  the  jobbing  end 
of  the  business.  A  Mississippi  retailer  found  buying  under 
such  conditions  quite  advantageous.  He  was  able  to  save 
eighteen  hundred  dollars  during  the  year,  and  the  system 
did  not  necessitate  the  purchasing  of  larger  quantities  than 
previously.  As  a  source  of  supply  for  most  retailers,  how- 
ever, semi-jobbing  affords  only  a  limited  field  because  this 
jobber's  retailing  unit  will  be  in  direct  competition  with 
retailers  buying  from  him. 

Commission  Merchant.  The  commission  merchant  is 
found  in  every  business  community  of  any  size.  He  is  an 
independent  link  in  the  marketing  chain.  He  usually  repre- 
sents the  manufacturer  in  selling  to  the  jobber  and  large 
retailers,  with  the  exception  of  those  commission  merchants 
in  the  produce  business.  He  is  only  a  minor  factor  in  the 
distributive  scheme,  so  far  as  the  average  retailer  is  con- 
cerned, and  an  explanation  of  his  services  does  not  for  this 
reason  require  much  space  here.  His  services  usually  end 
with  each  particular  transaction.  It  is  well,  however,  for 
the  careful  buyer  to  know  about  commission  merchants 
and  what  service  they  can  be  to  him. 

The  Buying  Exchange.  There  is  another  distributive 
agency  which  has  done  much  toward  giving  the  retailer 
some  of  the  benefits  from  buying  direct  from  the  manufact- 
urer, and  that  is  the  buying  exchange.  Such  an  exchange 
secures  a  number  of  retail  clients,  and  through  its  single 
management  buys  direct  from  the  sources  of  supply  and  then 

distributes  a  portion  of  the  purchase  among  the  members  of 

18 


SOURCES   OF   MERCHANDISE 

the  exchange.  Through  the  services  of  the  commission-man, 
or  exchange-manager,  as  he  is  more  often  called,  small 
grocery-stores  may  buy  merchandise  equally  as  cheap  as 
many  of  the  wholesale  establishments,  and  cheaper  than 
many  of  their  larger  competitors.  In  a  single  week  ten 
carloads  of  flour  were  shipped  into  a  certain  city  in  a  single 
shipment,  to  be  divided  among  a  number  of  retailers.  Each 
one  of  a  number  of  grocers  paid  quantity  prices  and  was 
able  to  buy  as  little  flour  as  he  thought  he  could  well 
handle. 

In  the  larger  cities  buying  exchanges  sell  all  kinds  of  staple 
domestics  and  commodities  in  the  dry-goods  line.  The  lead- 
ing merchant  in  one  Southern  city  acts  as  an  exchange- 
manager  for  many  of  his  smaller  competitors.  He  makes 
a  practice  of  buying  for  all  of  the  other  merchants  cotton 
thread  and  other  commodities,  where  a  quantity  must  be 
purchased  in  order  to  receive  the  extra  discounts  and  bo- 
nuses. Thus  they  all  receive  jobber's  discounts  on  the  mer- 
chandise bought  in  this  way.  The  exchange,  or  one  doing 
this  co-operative  buying,  charges  a  fee,  but,  nevertheless, 
this  is  much  less  than  the  discount  which  the  jobber  secures. 

Salesmen.  Prior  to  the  Civil  War,  merchants  found  it 
necessary  to  visit  markets  in  New  Orleans,  Cincirmati, 
St.  Louis,  Chicago,  or  New  York  City  once  or  twice  per 
year,  in  order  to  buy  merchandise  to  carry  them  through 
the  following  six  months  or  a  full  year.  Each  manufacturing 
concern  or  jobber,  as  the  case  might  be,  employed  scouts 
who  made  a  practice  of  hanging  around  the  hotels  with  the 
idea  of  enticing  the  buyer  to  visit  their  employers'  places  of 
business. 

Some  of  the  more  progressive  manufacturers  and  jobbers 

soon  discovered  that  these  representatives  could  do  a  very 

profitable  business  by  taking  sample  lines  of  the  merchandise 

gold  to  the  buyer  in  his  store.    This  convenient  method  of 

J9 


RETAIL    BUYING 

buying  made  it  unnecessary  for  many  of  the  merchants  to 
visit  the  market  and  lay  in  large  stocks  of  merchandise. 
The  traveling-man  became  the  connecting  link  between  the 
manufacturers  and  the  merchant,  and  as  a  result  practically 
every  house  of  any  size  placed  traveling-men  on  the  road. 

Business  conditions  changed.  Merchandise  began  to  be 
sold  on  a  smaller  margin  of  profit  because  the  wholesaler 
and  manufacturer,  who  had  previously  taken  long  chances 
with  merchants,  now  found  it  possible  to  do  business  with 
shorter  credits  and  on  much  smaller  accounts.  Where  they 
had  previously  sold  a  few  accounts  fairly  large  bills  of  mer- 
chandise, they  found  it  possible  to  sell  many  accounts  small 
bills  of  merchandise.  Merchants  began  taking  advantage 
of  discounts  because  they,  too,  found  the  newer  method  of 
doing  business  more  profitable. 

The  traveling-man  naturally  becomes  well  acquainted 
with  the  merchant  on  whom  he  calls,  his  methods,  and  his 
business.  He  can  well  judge  the  financial  standing,  together 
with  the  merchant's  ability  to  do  a  successful  business,  and 
can  sell  him  accordingly.  The  traveling-man  has  come  to  be 
regarded  as  the  merchant's  best  friend,  although  many  mer- 
chants fail  even  now  to  realize  the  fact.  He  visits  successful 
stores  all  over  the  country,  picking  up  ideas  which  would 
be  of  benefit  to  the  average  retailer. 

Illustrations  of  the  type  of  merchant  who  overlooks  the 
value  of  the  traveling-man's  friendship  are  common.  A 
salesman  told  the  writer  why  he  disliked  to  visit  a  cer- 
tain store  in  a  certain  town.  The  merchant  was  of  the 
type  who  never  fails  to  impress  the  salesman  with  the  im- 
portance of  his  own  position.  Frequently  it  was  necessary 
for  the  salesman  to  stand  around  two-thirds  of  the  day  before 
he  was  given  an  interview,  and  sometimes  he  was  then  told 
that  the  merchant  was  not  ready  to  buy  that  day.     The 

salesman,  having  wasted  two  days  before  he  had  the  chance 

20 


SOURCES   OF   MERCHANDISE 

to  show  his  merchandise,  quoted  higher  prices  in  order  that 
he  might  offer  a  sufficient  reduction  to  meet  the  merchant's 
demands.  In  other  words,  this  merchant  bought  discounts 
instead  of  merchandise. 

The  travehng-man  of  experience  is  a  valued  help  to  the 
merchant.  He  has  the  merchant's  interest  at  heart  because 
he  expects  to  travel  over  the  same  route  for  many  years  to 
come.  He  makes  an  estimate  of  what  merchandise  the  store 
can  use  and  helps  the  merchant  accordingly.  A  traveling- 
man  doing  business  with  a  new  retailer  in  a  small  Wisconsin 
town  found  he  could  readily  sell  one  to  six  dozen  of  each 
number  of  his  entire  line.  As  a  matter  of  good  judgment, 
the  retailer  could  handle  in  all  probability,  within  a  reason- 
able period  of  time,  one-twelfth  to  one-half  dozen  only.  To 
accept  such  an  order  would  have  been  suicidal  for  the  sales- 
man. So  he  persuaded  the  merchant  to  give  him  a  sample 
order,  trying  out  the  merchandise  before  placing  a  larger 
one.  It  so  happened  the  merchandise  did  not  sell  readily, 
and  as  a  result  the  salesman  made  a  lifetime  friend  of  the 
merchant. 

An  intelligent  buyer  should,  of  course,  be  open  to  convic- 
tion. Each  salesman  who  calls  should  be  seen  at  the  earliest 
possible  moment,  and  treated  as  courteously  as  possible. 
Many  buyers  say  they  have  found  it  profitable  to  look  at 
every  line  brought  to  them,  and  that  they  become  in  that 
way  more  familiar  with  the  poor  lines,  as  well  as  more  expert 
in  picking  good  ones. 

The  retailer  who  does  not  visit  the  market  frequently  has 

a  splendid  opportunity  of  keeping  his  stock  clean  and  up  to 

date  through  the  visits  of  salesmen.    The  salesman  usually 

makes  from  four  trips  up  per  year,  according  to  the  line  and 

the  size  of  the  territory.    On  each  of  his  trips  he  has  the 

newest  and  best  selling  merchandise  his  house  is  capable  of 

producing.    The  merchant  is  able  to  remain  in  his  store, 

21 


RETAIL    BUYING 

attend  to  business  every  day,  and  make  selections  of  the 
needed  merchandise.  Even  the  biggest  city  buyers  make  it 
a  practice  to  see  all  salesmen.  They  are,  however,  forced  to 
make  appointments  in  advance. 

Mailway.  Certain  manufacturers  have  begun  a  system- 
atic method  of  introducing  their  merchandise  through  the 
mails.'  They  mail  samples  of  their  product,  together  with 
catalogue  and  price-list,  to  merchants  all  over  the  country. 
A  bill  is  mailed  for  the  commodity,  and  if  the  merchant  does 
not  care  to  try  out  the  line  he  is  at  liberty  to  return  it. 
The  manufacturers  who  make  use  of  this  system  maintain 
that  it  saves  the  retailer  15  to  25  per  cent.,  and  gives  the 
buyer  new  commodities  much  more  quickly  than  by  the  old 
way.  They  urge  further  that  it  covers  the  country  for  them 
in  the  same  length  of  time  required  for  the  salesman  to  visit 
one  city. 

Ready-to-wear  merchants  are  beginning  to  realize  that 
they  can  add  considerably  to  their  profit  and  increase  their 
business  by  making  a  practice  of  writing  various  manufact- 
urers for  samples  of  their  products.  The  garment  manu- 
facturers are  beginning  to  advertise  their  new  and  attractive 
garments,  laying  special  stress  on  the  offer  of  "Samples 
mailed  on  request."  This  enables  the  retailer  to  compare 
qualities  and  prices  before  placing  an  order.  What  is  being 
done  in  this  line  may  be  done  in  almost  any  other.  Although 
some  manufacturers  are  much  opposed  to  this  plan,  it  could 
be  forced  on  the  manufacturer  quite  generally  should  the 
retailer  insist.  The  plan  has  much  to  recommend  it,  and  is, 
at  least,  worth  a  tryout.  The  retailer,  however,  should  be 
careful,  in  making  purchases  by  mail, to  see  that  he  gets  the 
very  best  prices  obtainable.  A  number  of  hardware-dealers 
recently  found  out,  through  the  efforts  of  their  national  as- 
sociation, that  their  mail  orders  did  not  receive  the  same 

prices  which  their  orders  given  to  salesmen  did.    There  was  a 

22 


SOURCES    OF    MERCHANDISE 

discrepancy  ranging  from  2  to  90  per  cent,  in  the  difference 
between  prices  charged  on  mail  orders  and  on  those  given 
the  salesmen. 

Bankrupt  Sales  and  Close-Outs.  The  buying  of  job  lots 
and  "close-outs"  is  an  important  question.  Every  day  we 
learn  of  some  buyer  who  has  won  riches  and  success  through 
the  system.  Years  ago  this  no  doubt  was  true.  The  older 
traveling-men,  out  of  Chicago  and  New  York,  tell  of  a 
successful  merchant  who  was  always  in  the  market  for 
jobs.  His  one  weakness  was  that  of  buying  all  the  "jobs" 
he  could  get  his  hands  on  and,  strange  to  say,  he  usually 
sold  all  he  bought.  As  soon  as  he  reached  the  market  and 
registered  he  was  besieged  with  salesmen  who  had  "jobs" 
to  sell.  He  took  long  chances  on  every  buy  and  generally 
succeeded  in  getting  rid  of  what  he  bought. 

Some  buyers  have  the  proper  outlet  for  any  kind  of  mer- 
chandise they  care  to  buy.  They  cater  to  the  cheap  trade  of 
the  town,  and  they  are  willing  to  buy  anything  that  they  can 
purchase  at  a  bargain.  Even  in  such  places  the  chances 
are  that  some  of  the  merchandise  will  not  move  at  any  price. 

There  are  many  assortments  of  merchandise  which  should 
not  be  called  "jobs."  Sometimes  a  house  will  have  a  few 
dozen  of  a  certain  commodity  to  be  closed  out.  The  mer- 
chandise is  in  perfect  condition,  fresh  and  crisp  as  it  ever  was. 
The  mere  fact  that  it  is  no  longer  a  regular  number  does  not 
lessen  its  value  from  the  buyer's  viewpoint.  Such  offerings 
are  not  taken  up  with  every  house.  Salesmen  save  the  good 
propositions  of  this  kind  for  their  better  customers,  and  an 
outsider  seldom  gets  the  opportmiity  to  purchase. 

Stores   catering  to   the   better  classes  of  trade  find   it 

more  profitable  to  stock  the  best  quality  of  merchandise 

which  can  be  bought.    They  have  a  reputation  to  uphold 

and  for  that  reason  they  must  give  the  customer  the  best. 

"Jobs"  and  "close-outs"  seldom  have  the  clean  appearance 

23 


RETAIL    BUYING 

of  regular  stock,  and  in  buying  them  the  store  is  taking  a 
chance.  The  element  of  style  is  also  an  important  essential 
in  the  dry-goods  field,  and  if  the  merchandise  to  be  closed 
out  is  new,  the  jobbers  are  going  to  reorder  on  it.  After 
all,  cost  and  value  are  two  different  things.  The  merchandise 
may  be  worth  much  more  than  asked  for  it,  but  if  it  does  not 
possess  the  necessary  style  or  selling  appeal  its  value  is 
doubtful. 

Visiting  the  Market.  In  any  lines  of  business  visiting  the 
market  is  a  great  help,  and  in  some  lines  it  is  a  necessity. 
Many  kinds  of  merchandise  are  to  be  had  in  New  York 
City,  for  example,  which  cannot  be  bought  anywhere  else. 
Then  again,  the  change  during  a  brief  visit  allows  the  mer- 
chant to  see  what  is  being  done  in  other  stores;  it  awakens 
him  to  the  opportunities  he  may  be  allowing  to  slip  by,  and 
gives  him  an  opportunity  to  pick  up  new  ideas  which  will 
h^lp  him  in  his  business. 

The  time  to  visit  market  is  governed  to  a  great  extent  by 
the  buyer's  location  with  reference  to  it.  The  ideal  time 
in  most  lines  is  during  February  and  August.  During  these 
periods  the  hotels  are  filled  with  buyers  from  all  over  the 
world.  The  manufacturers  and  the  jobbers  have  a  better 
and  a  more  complete  line  of  samples  to  show,  and  their 
facilities  for  showing  are  greater. 

The  buyer,  on  reaching  New  York  City,  realizes  that  he 
is  there  to  shop — not  to  have  a  good  time.  If  he  shops 
efficiently  during  the  day,  does  his  routine  record  work, 
attends  to  his  correspondence,  he  finds  himself  pretty  fully 
occupied.  Buying  requires  a  keen  mind,  quick  thought, 
ability  to  judge  merchandise,  together  with  the  knowledge 
of  where  to  find  it. 

The  Buying  Syndicate.     Large  city  stores  have  found  it 

profitable  to  maintain  New  York  offices.     They  employ  a 

staff  of  buyers  who  spend  their  entire  time  shopping  and 

24 


SOURCES   OF    MERCHANDISE 

buying  merchandise.  Large  stores  not  quite  able  to  main- 
tain their  own  buying  offices  generally  find  that  they  can 
advantageously  make  use  of  a  buying  syndicate.  Such  an 
organization  usually  represents  from  twenty  to  fifty  various 
stores,  scattered  over  the  United  States,  and  its  buyers  scour 
the  market  for  bargains  to  be  sent  on  to  the  various  stores. 

The  advisability  of  the  medium-sized  and  smaller  stores 
maintaining  a  New  York  connection  depends  upon  several 
conditions.  First,  the  demand  and  use  for  such  a  connection. 
The  proprietor  of  a  small  store  in  southern  Termessee,  doing 
approximately  a  sixty-thousand-dollar  business  in  general 
dry-goods,  imagined  that  he  required  the  services  of  a  mar- 
ket connection.  A  six-hundred-dollar  contract  was  signed. 
Outside  of  a  weekly  circular  letter,  telling  what  was  being 
done  in  the  New  York  City  stores,  he  derived  no  benefit 
from  the  arrangement.  The  mformation  service  performed 
by  the  syndicate's  representatives  could  have  been  obtained 
with  equal  satisfaction  by  mail  and  through  the  trade  asso- 
ciations and  the  trade  press.  The  syndicate's  representa- 
tive secured  the  contract  by  explaining  the  great  saving  to 
be  made  in  buying  staples,  hooks  and  eyes,  featherbone, 
and  other  notions  through  the  medium  of  his  organization. 
The  same  saving,  however,  could  have  been  made  by  placing 
quantity  orders  with  the  manufacturers  sufficient  to  warrant 
the  store's  being  placed  on  the  jobbing-list.  Afterward  the 
merchandise  could  have  been  ordered  in  the  quantities 
needed. 

Second,  the  honesty  of  the  agency.  It  has  been  said 
that  some  of  the  so-called  "buying  syndicates"  make  a 
practice  of  soliciting  a  commission  from  the  merchant  for 
buying  the  goods  and  at  the  same  time  receive  a  commis- 
sion from  the  manufacturer  for  selling.  This,  of  course,  is 
not  the  case  with  all.  But  there  are  opportunities  for  such 
practices  with  small  chance  of  detection  by  the  average 

25 


RETAIL   BUYING 

retailer.  Third,  the  competency  of  the  agency.  Some  of 
the  so-called  New  York  office  buyers  are  little  more  than 
clerks  or  messenger-boys.  Many  have  no  more  ability  or 
fitness  for  the  work  than  the  people  behind  the  merchant's 
counters  at  home.  Other  offices  employ  high-priced,  effi- 
cient men  who  know  the  market. 

Assuming  that  a  store  needs  such  connection,  that  the 
business  justifies  it,  and  that  an  efficient  agency  has  been 
found,  a  season's  trial  should  prove  its  worth.  Such  an 
agency,  if  it  knows  its  business,  can  be  of  great  assistance 
to  a  buyer  when  in  market  and  at  home.  If  the  buying 
syndicate  includes  real  buyers,  allow  them  to  use  their  judg- 
ment during  the  season,  and  abide  by  the  results  of  their 
work  at  the  end  of  the  period. 

Limiting  Sources  of  Supply.  Each  manufacturer  and 
jobber  natural'y  advocates  buying  all  the  merchandise 
possible  from  a  single  manufacturer.  Their  argument  is, 
"Make  your  account  worth  while  and  we  will  give  you  in- 
side prices,  long  credit,  and  extend  other  favors."  It  is 
true  that  scattering  purchases  from  dozens  of  houses  tend 
to  make  an  account  less  valuable  to  each  of  them.  But  the 
advisability  of  dividing  the  business  depends  upon  the 
amount  of  the  store's  cash  capital  and  the  amount  of  busi- 
ness done  by  it. 

A  merchant  with  a  large  business  and  plenty  of  cash  capital 
can  afford  to  buy  wherever  he  pleases  and  in  whatever 
amounts  he  pleases.  It  is  not  necessary  that  he  ask  favors 
of  any  one,  and  every  manufacturer  or  jobber  seeks  his  ac- 
count. To  get  this  account  they  are  frequently  willing  to 
make  inside  prices  and  bid  for  the  business. 

The  smaller  merchant,  with  a  limited  amount  of  cash,  is 

not  as  fortunate  as  his  more  prosperous  brother.     Should 

he  confine  his  business  to  one  jobber,  there  is  some  chance 

that  the  jobber  may  not  live  up  to  his  part  of  the  contract. 

26 


SOURCES   OF   MERCHANDISE 

On  the  other  hand,  too  many  sources  of  merchandise  are 
equally  detrimental  for  the  merchant  with  limited  business 
and  small  capital.  The  smaller  the  business  the  greater 
necessity  of  confining  the  business  to  a  few  good  houses. 
It  is  said  that  the  manufacturers  and  jobbers  watch  a  small 
retailer  who  makes  a  practice  of  buying  from  many  houses. 
Should  a  retailer,  following  this  practice,  get  into  financial 
trouble,  there  is  not  as  much  chance  of  help  because  among 
many  creditors  it  is  more  difficult  to  get  an  agreement  to 
extend  time. 

Consequently  the  smaller  merchant's  chances  are  better 
if  he  selects  a  few  high-class,  reputable  houses  with  which 
to  do  business.  He  will  have  no  trouble  getting  credit  if  he 
needs  it.  When  the  opportunity  presents  itself  to  make 
good  buys  from  other  houses,  other  than  those  selected, 
there  can  be  no  particular  harm  in  taking  advantage  of 
them. 

In  buying  merchandise,  the  original  cost  is  not  the  only 
consideration.  The  retailer  can  sometimes  get  better  quo- 
tations from  a  distant  market,  but  after  adding  express  or 
freight  charges  and  allowing  for  the  disadvantages  of  delays 
in  shipment,  the  near-by  center  often  has  the  advantage.  In 
this  case  the  merchandise  is  received  promptly  and  better 
service  is  given.  Rush  orders  may  be  filled  on  short  notice, 
and  exchanges  may  be  effected  with  greater  ease.  There- 
fore, every  retailer  should  strive  to  make  some  good  connec- 
tion with  a  jobbing-house,  or  a  manufacturer  in  a  near-by 
market,  as  well  as  with  the  manufacturer  or  jobber  in  the 
more  distant  market  where  the  merchandise  may  be  bought 
for  the  lower  price. 

Buying  of  Friends.  A  well-known  retail  store  in  a  small 
town,  using  approximately  five  thousand  dollars  in  furs  each 
year,  made  a  practice  of  buying  from  one  house.  The  buyers 
would  not  take  the  time  to  investigate  prices  of  other  fur- 

27 


RETAIL   BUYING 

riers.  The  salesman  who  sold  the  line  purchased  made  a 
practice  of  coming  into  the  town  on  Sunday,  opening  up 
his  trunks  in  the  store,  and  virtually  selecting  the  bill  for 
the  buyers.  Because  of  friendship  this  firm  purchased  their 
furs  regardless  of  the  price.  This  condition  existed  for  ten 
years,  and  during  that  time  the  department  lost  money  on 
its  fur  business.  First,  because  the  merchandise  was  not 
bought  right,  and,  second,  because  too  much  was  bought  to 
dispose  of  during  the  season. 

Many  keen  buyers  dislike  doing  business  with  "friends." 
From  their  viewpoint,  it  is  harder  to  turn  the  "friend"  down 
than  the  ordinary  salesman.  They  should,  of  course,  have 
no  scruples  on  this  score,  because  friendship  only  begins  when 
prices  are  equal.  In  buying,  every  man  is  in  for  himself  and 
his  own  interests  must  come  first.  Therefore,  buy  for  quality 
and  price,  and  keep  friendship  out  of  consideration  until 
after  business  hours. 


Ill 

TYPES   OF  MERCHANDISE 

Branded  Merchandise.  Branded  or  nationally  advertised 
merchandise  is  that  for  which  its  maker  or  distributer  creates 
a  demand  for  the  retailer.  Advertising  campaigns  are 
launched  in  magazines,  newspapers,  street-car  posters,  bill- 
boards, and  other  mediums  in  order  to  familiarize  the  public 
with  the  brand  and  to  induce  the  consumer  to  believe  that 
this  particular  brand  is  best  suited  to  his  needs.  Some  manu- 
facturers have  succeeded  so  well  that  their  trade-mark  is 
known  to  every  one  and  the  name  of  the  product  is  at  the 
tip  of  every  consumer's  tongue.  The  retailer  is  the  medium 
through  which  the  wants  of  the  public  are  satisfied. 

Quality.  A  branded  commodity,  through  the  aid  and 
guarantee  of  a  store,  the  co-operation  of  the  salespeople, 
together  with  clever  advertising,  when  established,  wins  the 
confidence  of  the  public.  The  consumer  tries  the  commodity, 
begins  to  have  confidence  in  it,  and  is  satisfied  to  try  it  again. 
The  general  belief  is  that  it  possesses  good  qualities  and  is 
the  best  that  money  can  buy.  Advertising  has  made  the 
label  a  sign  of  quality.  A  stranger  in  a  distant  city  may  make 
purchases  from  stores  of  unknown  reputation  with  perfect 
assurance  that  he  is  getting  his  money's  worth.  The  quality 
must  be  upheld  if  the  confidence  of  the  public  is  to  be  pre- 
served.    Yet  it  must  be  conceded  that  there  are  many  bulk 

lines  and  unadvertised  lines  which  are  equally  as  high  in 

29 


RETAIL   BUYING 

quality  as  the  advertised  products.  The  merchant  should 
be  capable  of  judging  the  quality  as  well  as  the  other  fac- 
tors affecting  his  decision  as  to  branded  vs.  unbranded 
merchandise,  for  quality  alone  cannot  be  the  determining 
factor. 

Value  of  the  Manufacturer's  Name.  Retailers  handling 
branded  lines  do  so  because  of  the  ready  sale  found  for  them, 
and  in  some  cases  because  of  competition.  Seldom  are  such 
lines  handled  for  the  large  profits  made  through  the  sale. 
Women's  Wear  recently  published  the  following  statement, 
which  emphasizes  this  point: 

That  87.6  per  cent,  of  the  people  buy  the  advertised  article 
in  preference  to  the  unadvertised,  all  things  being  equal,  is  the 
remarkable  discovery  made  by  Raymond  B.  Callahan  in  an  in- 
vestigation into  the  effect  of  price-cutting  on  trade-marked  grocery 
articles  in  Greater  New  York.  The  results  of  Mr.  Callahan's 
investigation  are  being  sent  out,  in  part,  in  a  pamphlet  issued  by 
the  National  Trade  Association.  In  investigating  the  advertising 
phase  of  the  matter,  Mr.  Callahan  offered  the  foUoA^ing  question: 

Question  1 — "When  you  go  to  a  grocery-store  and  find  two 
articles  of  similar  nature  for  sale  at  the  same  price,  one  of  which  is 
a  nationally  advertised  article  and  the  other  an  unadvertised  article, 
wliich  article  do  you  purchase?" 

The  answer: 

87.6  per  cent,  buy  the  advertised  article 
3.6  per  cent,  buy  the  unadvertised  article 
8.8  per  cent,  non-committal 


100  per  cent,  total 

Conclusions: 

The  condition  stated  in  this  question  is  one  in  which  all  things 
are  equal  on  each  side,  except  that  one  article  is  advertised  and  the 
other  article  is  not  advertised. 

The  starthng  tiling  about  the  rephes  to  this  question  is  the 
manner  in  which  so  large  a  percentage  of  the  women  admit  that 
they  are  influenced  in  their  purchasmg  by  the  advertising  done  by 
the  manufacturer. 

30 


TYPES   OF   MERCHANDISE 

The  replies  are  a  proof  of  the  claim  made  by  the  manufacturers 
that  their  advertising  creates  a  good-^vill  value  for  their  trade-mark 
which  is  of  great  financial  worth.  They  prove  that  manufacturers 
really  have  "good-wiU"  which  might  be  injured. 

The  remaining  questions  were  framed  to  determine  primarily 
whether  this  "good-will  value,"  now  proved  to  exist,  is  really  in- 
jured, increased,  or  not  affected  at  all  by  the  retailer's  act  of  selUng 
the  trade-marked  article  at  a  price  below  the  so-called  "standard 
price." 

Question  2 — "When  you  find  two  articles  of  similar  nature  for 
sale  at  different  prices,  the  unadvertised  article  being  priced  lower 
than  the  advertised  article,  which  do  you  buy?" 

The  answers: 

60.6  per  cent,  buy  the  advertised  article 
24.2  per  cent,  buy  the  unadvertised  ai-ticle 
15.2  per  cent,  non-committal 

100  per  cent,  total 

Conclusions: 

In  Question  1  both  articles  were  on  an  even  basis,  except  that 
one  of  them  had  advertising  in  its  favor.  In  this  second  question 
both  articles  are  on  an  even  basis,  except  that  one  has  advertising 
in  its  favor  and  the  other  has  lower  price  in  its  favor. 

In  the  first  question  we  determined  the  great  power  of  adver- 
tising to  sway  the  purchase  in  favor  of  an  article  which  otherwise 
has  no  advantage  over  a  competing  article.  In  the  present  question 
we  are  enabled  to  determine  the  relative  pulling  power  of  "adver- 
tising" and  of  "lower  price"  as  factors  in  competition. 

Under  the  conditions  of  the  first  question  87.6  per  cent.,  or  ap- 
proximately 90  per  cent.,  of  the  women  purchased  the  advertised 
article.  Under  the  conditions  of  this  second  question  the  per- 
centage of  women  who  purchased  the  advertised  article  drops  to 
60.6  per  cent.  This  is  a  difference  of  about  30  per  cent,  of  the 
entire  number  of  purchasers,  and  is  a  loss  of  approximately  one- 
third  of  the  purchasers  which  the  advertised  article  had  under  the 
conditions  of  Question  1.  In  other  words,  to  approximately  one- 
third  of  the  women  the  "appeal  of  price"  is  greater  than  the  "ap- 
peal of  advertising";  and  to  approximately  two-thirds  of  the  women 
the  "appeal  of  advertising"  is  stronger  than  the  "appeal  of  price." 

This  would  seem  to  indicate  that  in  so  far  as  two-tliirds  of  the 

31 


RETAIL   BUYING 

women  are  concerned,  the  manufacturer  need  not  fear  attempts  on 
the  part  of  the  retailer  to  substitute  "private  brands"  of  his  own 
at  a  clicaper  price,  and  that  the  ratio  of  the  effect  of  advertising 
to  that  of  price-cutting  is  two  to  one  in  favor  of  advertising. 

The  opponents  of  advertised  lines  argue  that  the  retailer 
is  responsible  for  the  public's  favoring  the  branded  com- 
modities. The  retailer  advertises  and  pushes  these  lines 
because  they  are  easier  to  sell.  They  supposedly  require  less 
effort  on  the  part  of  the  salespeople.  "Any  girl  can  sell 
a  branded  commodity,"  says  a  well-established  druggist, 
"when  she  hasn't  brains  enough  to  do  anything  else."  The 
retailer  is  known  to  the  trade  and  his  name  should  be  worth 
many  times  that  of  the  manufacturer  in  that  immediate 
community.  Therefore,  why  should  not  he,  the  retailer,  see 
that  the  customer  buys  the  independent  lines,  the  lines  pro- 
ducing the  best  profit,  on  his  recommendation?  Should  the 
merchandise  go  wrong  the  retailer  (not  the  manufacturer) 
makes  good  the  loss  to  the  customer.  Three  out  of  five  times 
the  retailer  can  induce  the  customer  to  try  a  special  brand  of 
coffee.  Should  the  coffee  fail  to  come  up  to  expectation  it 
can  be  returned.  How  do  the  toilet-goods  departments  in- 
troduce the  new  odors  in  perfumes?  The  demonstrator  per- 
mits the  customers  to  smell  them,  thus  creating  a  desire. 
Why  can't  it  be  done  in  most  other  lines  ? 

Manufacturer's  Aids.  Manufacturers  and  jobbers  of 
branded  commodities  insist  that  they  not  only  create  a 
demand  for  the  retailer,  but  that  they  are  continually  fur- 
nishing him  with  selling  aids.  Various  kinds  of  posters, 
form-letters,  booklets,  copy  for  advertising,  cuts,  electros, 
and  other  advertising  matter  are  sent  out  to  assist  the 
retailer  in  building  up  his  business. 

While  it  is  perfectly  true  that  this  is  done,  much  of  the 

copy  sent  out  is  ineffective,  lacking  character  or  individuality 

from  the  retailer's  viewpoint.     And  the  retailer  feels  that 

32 


TYPES    OF    MERCHANDISE 

he  is  paying  for  it  all  by  paying  a  trifle  more  for  the  mer- 
chandise. 

Difference  in  Profits.  A  well-known  line  of  bedroom 
slippers  may  be  purchased,  delivered,  put  in  stock  for  sale, 
and  marked  to  show  a  profit  of  27  per  cent.  A  slipper  of 
equal  sale  value,  unadvertised,  may  be  purchased  and 
marked  to  show  a  profit  of  36  per  cent.  This  is  true  in  com- 
paring many  branded  lines  with  the  unadvertised.  The 
profit,  in  some  cases,  is  even  smaller  than  given  in  this  ex- 
ample. The  advocates  of  branded  lines  insist  that  the  more 
frequent  turnover  will  more  than  offset  the  small  profit; 
they  are  also  of  the  opinion  that  less  time  is  required  to  make 
the  sale.  The  argument,  of  course,  is  that  the  customer 
comes  into  the  store  to  make  the  purchase  of  the  branded 
commodity,  and  no  time  is  required  for  the  salesperson  to 
make  the  sale. 

There  is  no  doubt  of  the  truth  of  this  argument  in  many 
cases,  as  with  those  of  the  Ingersoll  watch  or  the  Big  Ben 
alarm  clock.  Yet  in  many  lines,  like  women's  ready-to- 
wear,  the  statement  is  of  doubtful  accuracy.  For  instance, 
an  actual  test  of  this  principle  by  a  large  Wisconsin  store 
resulted  in  the  dropping  of  the  branded  line.  During  the 
entire  time  the  advertised  commodity  was  carried  in  stock 
no  customer  came  into  the  store  to  ask  for  this  special  brand. 
Time  was  always  required  to  create  a  desire  for  the  specific 
article,  and  any  other  brand  could  have  been  sold  in  the  same 
length  of  time.  Usually  the  customer  would  select,  on  being 
shown  both  brands  by  the  salesman,  the  unadvertised — the 
salesman,  of  course,  forgetting  to  mention  the  brands.  In 
advertising  the  lines  no  play  was  made  on  the  name  of  the 
manufacturer. 

Few  women  make  up  their  mind  to  purchase  a  certain 

brand  before  entering  the  store.    Although  few  men  like  to 

shop  around,  they  frequently  purchase  other  lines  than  they 
3  33 


RETAIL    BUYING 

started  out  to  buy.  A  man,  as  a  rule,  however,  is  more 
easily  persuaded  by  advertising  to  buy  a  certain  brand.  The 
woman  likes  to  shop  and  she  goes  from  one  place  to  another 
comparing  values  before  she  makes  a  purchase.  Nineteen 
out  of  twenty  high-class  store  men  will  admit  that  they 
have  still  to  see  a  woman  come  into  the  store  for  a  specific 
branded  article  in  women's  wear,  asking  for  color,  size,  and 
make  payment,  ordering  the  merchandise  wrapped.  In  most 
lines  of  business  sales  of  twenty-five  cents  and  over  must  be 
created  by  the  salesperson  before  they  are  made.  This  may 
not  be  true  in  cases  of  special  sales,  however. 

Stock  Turns.  In  carrying  branded  merchandise  the  re- 
tailer is  frequently  of  the  opinion  that  because  a  line  is 
advertised  more  turns  are  made.  For  this  reason  he  educates 
his  salespeople  to  believe  in  branded  lines,  and  they,  in  turn, 
put  all  their  efforts  on  these  lines.  In  other  words,  the  sales- 
people frequently  create  the  high  value  of  branded  mer- 
chandise in  the  minds  of  the  public.  A  toilet-goods  girl, 
while  serving  a  customer  who  was  comparing  an  advertised 
face-cream  with  one  not  so  well  known,  was  overheard  re- 
marking: "I  would  suggest  that  you  take  Blank's.  It  is 
well  known  and  we  sell  more  of  it.  Besides,  it  is  advertised 
in  all  the  leading  magazines,  and  it  must  surely  possess 
quality."  The  advertised  cream  was  sold  and  the  store 
netted  seven  cents  on  the  sale,  while  the  sale  of  the  other, 
in  this  case  equally  as  good,  would  have  netted  a  profit  of 
twelve  and  one-half  cents.  Both  had  the  guarantee  of  the 
store  behind  them,  and  either  could  have  been  sold  in  the 
same  length  of  time. 

Branded  lines  may  be  turned  more  quickly  when  reduced 

in  price.    Most  customers  possess  a  fondness  for  a  bargain. 

An  advertised  commodity,  regularly  sold  at  fifty  cents,  may 

be  sold  more  readily  when  reduced  to  forty-three  cents. 

Many  people  will  come  in  to  buy,  even  though  they  are  not 

34 


TYPES   OF   MERCHANDISE 

in  need  of  the  article.  Some  stores  make  leaders  of  such 
lines  in  order  that  they  may  bring  customers  into  their 
stores.  This,  of  course,  reduces  the  margin  of  profit  still 
further,  but  it  brings  publicity  and  more  patrons  are  made 
for  the  store.  The  retailer  is  more  capable  of  judging  what 
the  selling  price  of  a  commodity  should  be.  He  understands 
what  the  merchandise  costs,  the  costs  of  doing  business,  to- 
gether with  the  knowledge  of  what  the  prospective  customer 
will  pay. 

Stocks  may  be  turned  in  any  line,  and  with  any  kind  of 
merchandise,  if  the  right  effort  is  put  into  the  work.  The 
salespeople  must  be  taught  to  believe  in  the  merchandise, 
and  the  store  must  stand  behind  it  after  it  is  sold.  Con- 
centrated effort,  with  the  right  kind  of  selling-talk,  will  cause 
the  stock  to  move  rapidly. 

Conclusion.  Many  merchants  have  begun  careful  in- 
vestigation of  their  stores  with  the  idea  of  eliminating  some 
of  the  branded  lines  and  replacing  them  with  merchandise  of 
equal  value  or  better  line  upon  which  a  better  profit  may  be 
made.  Some  brands,  of  course,  cannot  be  eliminated  with- 
out the  loss  of  business.  At  the  same  time  other  merchants 
have  done  just  the  opposition,  by  throwing  out  all  un- 
branded  merchandise.     It  is  still  a  mooted  question. 

In  the  buying  of  merchandise  it  is  necessary  that  the  re- 
tailer place  his  customer  and  himself  before  the  manufact- 
urer. Value  must  be  fomid  for  the  money.  Merchandise 
must  be  offered  which  will  bring  friends  and  customers  to 
the  store  and  money  for  the  merchant.  Instead  of  buying 
advertising  alone,  as  is  sometimes  done,  good,  honest  mer- 
chandise must  be  bought.  The  retailer  must  push  this 
merchandise  and  stand  behind  it.  He  is  building  up  his  own 
business  and  not  the  business  of  the  trade-mark  owner.  Why 
not  compare  the  branded  merchandise  with  the  non-adver- 
tised and  purchase  the  best  quality  for  the  least  money? 

35 


RETAIL    BUYING 

Buy  merchandise  which  will  enable  the  customer  to  get  the 
most  for  his  money,  and  train  the  salespeople  to  educate  the 
customer  into  buying  this  class.  In  some  lines  this  will  be 
found  in  nationally  branded  goods  and  in  others  in  un- 
branded  goods.  It  is  the  buyer's  job  to  know  which  to 
select. 

Private  Brands.  Closely  associated  with  the  nationally 
advertised  merchandise  is  the  question  of  private  brands. 
Frequently  it  is  found  that  retailers  who  are  antagonistic 
toward  nationally  advertised  merchandise  favor  private 
brands.  The  label  of  the  private  branded  commodity  may 
mean  nothing  or  it  may  mean  a  great  deal,  depending  entirely 
upon  the  character  of  the  house  selling  the  merchandise. 
It  represents  the  house,  its  policy,  and  the  merchandise. 
In  other  words,  it  is  an  absolute  guarantee  of  the  quality, 
backed  by  the  owner  of  the  brand,  the  retailer.  A  reputable 
store  can  well  afford  to  have  private  brands  and  to  push 
them;  but  private  brands  to  the  store  of  questionable  repu- 
tation would  be  a  losing  venture. 

Novelty  Brands.  The  retailer  has  found  a  method  of 
educating  the  public  to  buy  higher  priced  merchandise  by 
carrying  a  stock  of  novelties.  Manufacturers  of  men's 
collars,  for  example,  have  found  that  they  can  do^a  profitable 
business  by  manufacturing  collars  of  the  novelty  type,  satin 
stripes  or  piques,  which  may  be  retailed  at  twenty-five, 
thirty-five,  and  fifty  cents  each.  There  are  men  who  will 
purchase  this  class  of  merchandise  and  will  be  glad  of  the 
opportunity  to  do  so.  They  add  distinction  to  the  store  and 
tone  to  the  stocks.  This  class  of  merchandise,  as  a  whole, 
however,  should  be  bought  in  small  quantities  only.  As  it 
is  subject'to  sudden  style  changes,  special  care  must  be  taken 
to  see  that  no  more  merchandise  is  purchased  than  can  be 
quickly  turned.  It  should  be  purchased  as  soon  as  it  ap- 
pears on  the  market,  placed  in  stock,  and  pushed  while  it 

36 


TYPES    OP   MERCHANDISE 

is  new.  The  "live-wire"  retailer  makes  a  practice  of  scour- 
ing the  market  for  these  new  things,  and  reaps  the  benefit 
of  his  knowledge  before  the  novelty  wears  off. 

A  novelty,  or  a  specialty,  as  it  is  sometimes  called,  may 
be  one  of  two  kinds:  either  an  article  which  will  be  demanded 
by  the  purchasing  public  because  of  style,  etc.,  or  one  for 
which  the  demand  will  necessarily  have  to  be  created  by 
the  retailer.  Regardless  of  whether  the  commodity  be  an 
electric  chafing-dish,  a  bronze  vase,  a  piece  of  cut  glass,  a 
brand  of  fancy  cheese,  or  a  waist-pin,  the  buying  is  done  in 
the  same  way.  In  the  case  of  style  novelties  the  buying 
is  determined  by  study  of  the  trade  papers,  fashion  maga- 
zines, and  other  publications.  The  amount  to  be  bought  is 
gauged  by  the  output  of  the  store,  together  with  the  idea 
of  how  well  the  commodity  will  sell.  When  it  comes  to 
novelties  for  which  a  demand  must  be  created,  the  buyer 
must  rely  upon  his  own  judgment  as  to  whether  or  not  he 
can  create  the  necessary  demand.  Of  course,  in  either  case 
a  chance  is  being  taken,  but  the  experienced  buyer  can  esti- 
mate fairly  accurately  the  possibilities  in  an  article.  At  the 
same  time  the  buyer  must  keep  constantly  on  the  lookout 
for  new  things,  because  in  many  cases  the  greater  part  of 
his  profit  is  made  through  this  class  of  merchandise. 

Even  though  most  buyers  can  well  afford  to  take  chances, 
care  should  be  exercised  in  buying  such  goods.  It  is  far 
better  to  buy  too  little  than  too  much.  Should  the  article 
prove  a  favorite  more  can  be  ordered  at  once,  but  if  it  turns 
out  to  be  a  "sticker"  no  price-cutting  will  move  it.  It  must 
be  bought,  however,  because  it  takes  this  kind  of  merchandise 
to  sweeten  up  the  staples  and  to  assist  in  selling  both. 

Exclusive  Agencies.  The  advisability  of  having  an  ex- 
clusive agency  differs  with  various  shopping  lines.  In 
cloaks,  suits,  and  men's  clothing  a  retailer,  catering  to  the 

better  class  trade,  can  advantageously  handle  a  restricted 

37 


RETAIL    BUYING 

line.  Customers  make  a  practice  of  shopping  through  the 
various  stores  for  such  merchandise,  and  they  are  usually 
looking  for  exclusive  models.  Should  the  same  garments 
be  shown  in  different  stores,  no  sale  would  result  for  any 
store.  Of  course,  with  popular-price  merchandise  exclusive- 
ness  is  not  an  essential. 

Piece  goods  (silks,  fancy  cottons,  and  novelty  wools)  sold 
to  more  than  one  merchant  in  a  town  or  city  will  cause 
trouble.  Frequently  the  plan  of  selling  two  or  more  mer- 
chants the  same  line,  but  different  patterns,  is  followed. 
Mistakes  are  sometimes  made,  resulting  in  the  same  pat- 
terns appearing  in  the  different  stores.  Each  merchant  is 
anxious  to  outdo  competitors,  and  starts  a  cut-price  cam- 
paign.   The  result  is  that  no  one  makes  a  profit  on  the  line. 

Corsets,  underwear,  hosiery,  and  kindred  lines  are  in  a 
different  class  from  the  other  lines  mentioned.  There  is 
little  shopping  from  place  to  place  for  some  particular  pat- 
tern or  style.  The  customer  may  want  some  special  weight 
and  she  may  shop  until  she  finds  it.  But  she  seldom  shops 
with  the  idea  of  comparing  a  style,  quality,  and  price.  With 
these  lines,  however,  there  are  so  many  different  sizes, 
weights,  materials,  and  styles  in  each  that  if  the  attempt 
is  made  to  carry  a  representative  stock  of  more  than  one 
line,  too  large  an  amount  of  cash  would  be  required  for  in- 
vestment, and  justice  would  be  done  to  no  one.  The  ap- 
pointment to  an  exclusive  agency,  a  complete  stock  in  one 
line,  backed  by  the  enterprise  of  a  live  merchant,  makes  an 
ideal  combination. 

A  dealer  who  accepts  the  exclusive  agency  for  a  certain 
brand  of  flour,  coffee,  or  any  other  grocery  staple,  does  so 
in  order  that  he  may  derive  all  the  benefit  from  the  manu- 
facturer's advertising  in  the  dealer's  immediate  locality. 
Through  handling  this  staple,  even  though  the  sale  nets 

only  a  small  margin  of  profit,  the  dealer  is  enabled  to  sell 

38 


TYPES   OF   MERCHANDISE 

other  more  profitable  articles.  Many  of  his  customers,  or 
prospective  customers,  become  accustomed  to  use  the  staple, 
and  they  are  necessarily  obliged  to  purchase  it  through  the 
dealer's  exclusive  agency.  This  plan  is  not  only  useful  to 
bring  in  trade  that  would  go  elsewhere,  but  it  adds  prestige 
to  the  store. 

The  representative  of  a  well-known  implement  manufact- 
urer tells  of  a  small  concern  which  secured  the  exclusive 
agency  for  his  line  of  implements.  The  concern,  being  young 
and  without  much  capital,  made  a  business  of  supplying 
farmers  who  had  the  cash  or  whose  notes  could  be  discounted 
at  one  of  the  local  banks.  On  the  advice  of  one  of  the  bank- 
ers the  line  was  pushed  for  all  it  was  worth.  Being  old  and 
well  established,  the  small  business  began  to  profit  by  the 
reputation  of  the  fine.  On  securing  the  name  of  a  prospect 
they  sent  out  a  regular  follow-up  to  make  the  sale.  A  man 
when  in  the  market  for  this  sort  of  a  commodity  usually 
writes  to  all  dealers  and  manufacturers  for  prices.  Their 
competitors,  in  the  mean  time,  were  usually  following  the 
same  prospect.  These  competitors,  having  more  than  one 
line  to  sell,  sent  salesmen,  representing  different  manufact- 
urers, in  turn,  to  see  the  prospect.  Each  salesman  on  dis- 
covering the  fact  that  the  dealer  had  previously  sent  a 
representative  of  a  different  manufacturing  company  out 
for  the  same  purpose  was  sure  to  cut  prices.  The  dealer,  of 
course,  was  the  loser  because  the  cut  would  come  out  of  his 
profit  should  the  sale  be  made.  The  business  with  the  ex- 
clusive agency,  however,  held  for  its  price,  relying  on  sales- 
manship and  the  quality  of  the  commodity  to  make  the  sale. 

Exclusive  Agencies  and  Advertised  Brands.  Those 
opposed  to  nationally  advertised  goods  believe  an  ex- 
clusive agency  to  be  a  detriment  to  the  business.  The 
argument  is  usually  advanced  that  the  dealer  spends  more 
time  advertising  and  pushing  the  manufacturers'  merchan- 

39 


RETAIL    BUYING 

dise  and  reputation  than  he  does  his  own  business.  This  is 
true  in  many  cases,  but  it  is  often  due  to  the  retailer's  own 
lack  of  business  knowledge.  Another  argument  which  is 
frequently  advanced  is  that  after  a  retailer  builds  up  a  good 
business  the  line  is  taken  away  from  him  and  given  to  some 
competitor.  This  may  be  true  in  some  cases.  But  it  ap- 
pears that  no  manufacturer  or  distributer  of  a  line  would 
be  unbusiness-like  enough  to  take  a  line  away  from  a  dealer 
who  was  doing  well  with  it  and  living  up  to  his  agreement. 
If  the  dealer  is  not  doing  well  with  the  line  and  it  is  not  an 
asset,  the  dealer  is  better  off  without  it. 

Any  dealer  who  is  favorable  to  nationally  advertised  goods 
would  do  well  to  secure  the  exclusive  agency  for  some  line 
of  merchandise.  In  some  cases,  contracts  guaranteeing  the 
sale  of  a  certain  amount  must  be  made.  Before  signing 
such  contracts,  careful  investigations  should  be  made  to 
determine  the  possible  market. 


PART    III 
BUYING    PRACTICE 


IV 


THE   MERCHANDIZING    PLAN 


Get  the  Basic  Facts.  One  of  New  York  City's  most  suc- 
cessful rug-buyers  delights  in  telling  of  an  experience  which 
early  taught  him  the  importance  of  getting  a  basis  of  facts 
before  beginning  the  buying.  He  began  work  in  a  small 
town  in  the  Far  West,  and  spent  several  years  in  clerking 
and  in  acting  as  the  general  handy  man.  Then  one  of  the 
partners  in  the  firm  sold  out  his  interest  to  the  other.  The 
new  owner  of  the  store,  young  and  progressive,  having  some 
cash  on  hand,  began  making  preparations  for  the  expansion 
of  the  business.  Many  of  the  customers  had  been  in  the 
habit  of  visiting  a  near-by  city  to  purchase  floor-coverings 
and  allied  commodities  not  carried  by  the  stores  in  the  town. 
Of  course  each  visit  to  the  city  meant  the  buying  of  other 
things  which  could  have  been  purchased  at  home.  There- 
fore it  was  decided  to  put  in  a  first-class  carpet-and-rug 
department,  and  as  the  young  clerk  in  question  was  the  most 
available  man  for  the  new  department,  even  though  he  knew 
little  about  the  merchandise,  he  was  put  in  charge  of  it. 

As  soon  as  the  decision  was  made  the  new  buyer  went  to 
Chicago  with  the  owner  of  the  store  to  select  the  opening  bill 
of  goods  for  the  new  department.  In  addition  to  staples, 
a  special  as  a  leader  was  under  consideration.  Fortunately 
they  realized  their  lack  of  knowledge,  so  at  the  first  whole- 
sale house  they  asked  for  advice  in  their  selection.     The 

43 


RETAIL    BUYING 

sales-manager,  a  good-natured  man  of  many  years'  expen- 
ence,  who  took  a  fatherly  interest  in  every  one  with  whom  he 
came  in  contact,  listened  to  their  story  with  interest.  Fi- 
nally he  asked,  "Have  you  ever  bought  rugs  before?"  "No." 
"Ever  sold  them?"  "No."  Then  he  went  on:  "What  is 
the  population  of  your  town?  What  kind  of  people  do  you 
have  there?  Do  you  cater  to  the  better  class?  How  much 
money  have  they,  or  do  they  live  on  credit?  Are  they  free 
spenders?  How  much  competition  have  you?  What  kind 
of  merchants  are  they?  Do  the  post-office  people  and  the 
express  agents  have  anything  to  say  about  the  amount  of 
money  the  people  send  out  to  the  mail-order  houses?"  The 
sales-manager  asked  various  other  similar  questions,  and 
then  said:  "Suppose  you  come  up  to-morrow  morning  at 
nine  o'clock.  In  the  mean  time  think  over  the  questions  I 
have  asked  you.  By  that  time  I  think  you  can  answer  them. 
Then  we  will  proceed  to  size  up  the  situation  and  decide 
on  the  lines  you  ought  to  carry." 

The  following  morning  they  found  the  sales-manager  on 
hand  and  ready  for  them.  They  discussed  the  questions  at 
further  length.  Several  huge  stacks  of  samples  were  then 
laid  out  on  the  floor,  and  chairs  were  placed  so  the  visitors 
could  see  the  line  to  the  best  advantage.  An  attendant 
showed  sample  after  sample,  while  the  sales-manager  and 
the  visiting  buyers  commented  on  each.  In  many  cases  the 
visitors  thought  favorably  of  samples  which  the  sales- 
manager  passed  by.  Patterns  which  seemed  suitable  to  the 
sales-manager  were  held  out  with  a  positive  suggestion  with 
which  the  buyers  invariably  agreed.  After  selecting  about 
fifteen  hundred  dollars'  worth  of  goods  they  were  told  that 
they  had  a  "good  start,"  and  that  as  they  could  always  get 
more  on  short  notice,  it  would  be  a  wise  plan  to  try  out  the 
lines  selected  before  buying  more  heavily. 

The  sales-manager  had  actually  selected  the  stock.    But 

44 


THE    MERCHANDIZING    PLAN 

he  made  it  appear  as  though  the  two  buyers  had  actually 
done  so.  He  had  asked  questions  enough  to  find  out  their 
exact  needs,  and  as  a  result  really  knew  more  about  them 
than  they  did.  The  merchandise  sold  well  and  with  the 
help  of  the  Chicago  house  they  built  up  a  splendid  business. 
Each  time  the  new  rug-buyer  visited  the  city  he  learned  a 
little  more  from  this  same  sales-manager,  until  finally  he 
was  able  to  select  merchandise  designed  to  meet  the  demands 
of  the  trade  and  the  competition  in  his  locality  without 
special  assistance. 

Merchandizing  Plans  and  Policies.  These  basic  facts 
should  include  as  complete  data  as  possible  on  the  people 
who  compose  the  natural  buying  community,  and  the  com- 
petition to  be  met.  Upon  this  basis  the  merchandise  plan 
and  the  merchandizing  policies  are  determined.  The  plan 
will  show  how  much  business  it  is  expected  to  do  in  each 
line,  month  by  month,  during  the  season:  how  much  stock 
should  be  carried  from  day  to  day  and  at  the  season's  end, 
and  what  the  price-range,  mark-up,  and  turnover  should  be. 
Only  upon  such  a  basis  can  the  buyer  work  intelligently. 

Visiting  the  Markets.  When  the  buyer  comes  to  the 
actual  selection  of  merchandise,  one  of  the  most  important 
questions  which  must  be  decided  is  whether  he  shall  visit 
manufacturers  and  wholesalers  in  the  buying  season  or  de- 
pend on  traveling-salesmen  and  on  purchases  from  manu- 
facturers' catalogues.  The  benefits  gained  by  being  on  the 
field,  to  see  full  lines  of  merchandise,  and  to  come  into  per- 
sonal contact  with  the  manufacturers  must  be  weighed 
against  the  expense  involved.  Experienced  buyers  regard 
the  trip  as  an  investment  upon  which  they  realize  large 
returns  in  an  accumulation  of  new  ideas  and  information 
in  regard  to  their  lines.  These  visits  to  the  market  are  es- 
pecially valuable  to  buyers  of  such  commodities  as  dress- 
goods,  ready-to-wear  garments,  shoes,  and  jewelry,  in  which 

45 


RETAIL    BUYING 


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THE    MERCHANDIZING    PLAN 

the  "latest  style"  is  an  important  consideration.  Buyers 
of  specialty  lines  see  many  fads  in  vogue  which  they  can 
introduce  in  their  home  towns  with  profit  to  themselves. 

For  example,  take  the  selections  of  women's  ready-to- 
wear  garments  by  the  buyer  who  has  decided  to  visit  the 
large  manufacturing  centers  at  least  twice  a  year.  It  is 
especially  true  in  this  line  that  the  retail  buyer  who  can 
go  to  the  market  in  the  buying  season  finds  there  help  which 
proves  greatly  to  his  advantage.  The  manufactm-ers  and 
jobbers  are  competing  with  one  another  to  have  the  most 
complete  showing  of  new  styles  and  fabrics.  The  large  retail 
stores,  as  they  are  in  direct  and  constant  touch  with  the 
manufacturers,  have  merchandise  not  yet  shown  by  traveling- 
salesmen.  At  the  same  time,  merchants  from  every  part 
of  the  country  are  in  the  city,  and  they  are,  as  a  rule,  the 
most  progressive  and  successful  ones.  They  are  always  will- 
ing to  discuss  the  problems  of  retailing  and  to  show  how 
they  are  solving  them  in  their  o"wti  stores. 

Preparation  for  the  Visit.  Here  again  we  will  assume 
that  the  buyer's  line  is  women's  wear.  His  first  task  is 
to  plan  the  "campaign."  Given  a  limited  amount  of  time 
and  a  definite  range  of  buying  to  be  done,  which  is  to 
fit  into  the  merchandizing  plan  of  his  department  for  the 
season,  the  careful  buyer  at  once  realizes  the  importance  of 
doing  at  home  everything  possible  in  the  way  of  prepara- 
tion. For  he  cannot  take  time  while  in  New  York  or  Chicago 
for  anything  which  could  have  been  done  in  advance.  It  is 
a  great  help  to  the  wearing-apparel  man  if  he  has  some  idea 
of  new  colors  and  styles  when  he  first  calls  upon  the  manu- 
facturer. Likewise,  he  must  know  what  distribution  he 
wishes  to  make  of  his  buying  allowance  throughout  the 
range  of  style,  color,  price,  and  size. 

The  question  naturally  arises  as  to  the  method  of  getting 

this  information  before  leaving  home.    It  is  obvious  that  a 

47 


RETAIL    BUYING 

systematic  study  of  the  trade  journals  in  women's  wear  will 
give  him  an  idea  of  the  new  styles,  colors,  and  fabrics.  Every 
such  journal  makes  an  earnest  effort  to  inform  the  retail 
merchant  of  these  facts  and  to  give  him  all  possible  help. 
But  not  every  buyer  makes  an  earnest  effort  to  use  this 
material  to  the  best  advantage.  One  way  of  getting  the 
information  is  to  clip  from  the  various  trade  journals  the 
refererices  to  each  different  line,  and  to  place  them  side 
by  side,  scrap-book  fashion.  Comparative  notes  can  then 
be  made  from  which  a  buying  policy  can  be  partly  decided 
upon  before  starting  for  market.  Advertisements  and  ar- 
ticles in  the  mercantile  sections  of  such  papers  as  the  New 
York  Times  and  the  Chicago  Tribune  often  give  good  hints 
on  style  tendencies.  It  is  well,  too,  to  watch  the  advertise- 
ments of  the  department  stores  and  specialty  shops  in  the 
market  centers,  for  such  stores  vie  with  one  another  in  being 
the  first  to  offer  strikingly  new  merchandise.  When  all  of 
these  hints  of  future  demand  have  been  arranged  for  ready 
reference,  the  buyer  has  a  basis  on  which  to  make  his  in- 
quiries. 

His  final  selection  of  merchandise,  however,  necessarily 
takes  into  consideration  the  sales  of  the  previous  season,  and 
his  own  knowledge  of  what  his  customers  will  buy.  Here 
again  he  can  make  careful  preparation  for  the  trip.  He  knows 
the  people  who  come  to  his  store.  He  knows  the  quahty 
of  merchandise  they  demand.  But  the  more  exact  this  in- 
formation is  the  more  definitely  it  can  direct  his  selection. 
He  will  find  invaluable  any  statistics  of  his  business  which 
will  readily  show  him  what  he  wishes  to  know  when  buying. 
For  certain  questions  occur  invariably  to  the  careful  buyer, 
and  must  be  answered  before  his  choice  can  be  made  to  the 
greatest  advantage: 

How  many  of  this  size  did  we  sell  the  past  season? 

What  colors  sold  in  large  quantities? 

48 


THE   MERCIiANDl2lNG    PLAN 

What  were  the  popular  prices? 

How  much  have  we  in  stock  now? 

Information  on  such  points  as  these  furnishes  a  valuable 
guide  to  purchasing.  The  accompanying  chart  shows  the 
method  one  ready-to-wear  buyer  used  in  keeping  track  of 
the  demand  for  children's  coats.  The  same  method,  with 
slight  modifications,  may  be  used  for  any  similar  line  of 
merchandise.  As  the  coats  were  sold,  entry  was  made  on 
the  sheet.  He  took  a  copy  of  the  entries  with  him  on  his 
visits  to  the  manufacturers  and  jobbers,  and  referred  to  it 
when  deciding  on  the  distribution  of  his  order  throughout 
sizes,  color,  and  price.  Definite  records  of  past  demands 
did  away  with  guessing,  and  told  him  all  he  needed  to  know. 

Another  help  which  the  buyer  can  prepare  at  home  is  the 
list  of  manufacturers  whom  he  wishes  to  visit  while  in  the 
city.  A  directory  of  the  ready-to-wear  houses  will  enable 
him  to  arrange  his  visits  with  regard  to  their  relative  loca- 
tion. A  great  deal  of  time  is  lost  in  going  from  one  concern 
to  another  far  distant,  when  others  which  are  to  be  visited 
lie  between  the  two. 

Sizing  Up  the  Market  Before  Purchasing.  Two  buyers 
from  small  cities  met  on  the  streets  of  New  York. 

"How  much  have  you  bought  since  you  came  a  week 
ago?"  asked  one. 

"Nothing  as  yet,"  answered  the  second  buyer.  "I've  been 
looking  in  the  large  stores  and  taking  numbers  at  the  manu- 
facturers'." 

"What  do  you  want  to  do  all  that  looking  for?"  asked  the 
first  man.  "I  know  my  trade.  I'm  hustling  right  through, 
and  I'll  finish  up  long  before  you  do." 

He  did  finish  quickly,  but  later  he  reported  a  "dull"  sea- 
son, while  the  second  buyer  had  "nothing  to  complain  of; 
just  busy  every  minute." 

This  instance  illustrates  two  widely  different  methods  of 
4  49 


RETAIL    BUYING 


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60 


THE    MERCHANDIZING    PLAN 

working  at  the  marketing  center.  The  first  buyer  hurried 
through  his  buying.  He  relied  on  his  own  personal  judgment 
and  taste  in  selecting,  without  first  finding  out  what  had 
already  begun  to  sell  successfully  at  retail  in  the  city.  He 
bought  from  the  first  manufacturer  who  seemed  to  have  a 
good  line,  without  a  careful  comparison  of  prices  and  quali- 
ties at  all  the  manufacturers'  whom  he  could  visit  to  his  ad- 
vantage. In  short,  he  neglected  the  very  opportunities  of 
observation  which  a  visit  to  the  market  offers. 

The  trained  buyer  proceeds  in  the  manner  of  the  second 
man  of  the  illustration.  His  study  at  home  of  the  trade 
journals  has  given  him  certain  ideas  concerning  the  season's 
demand.  The  first  thing  to  be  done  on  reaching  the  market 
is  to  ascertain  whether  his  own  estimates  can  be  relied  on. 
He  has  a  guide  in  the  merchandise  which  the  large  retail 
establishments  are  already  selling.  For  they  already  have 
in  stock  the  styles  from  which  he  must  choose  at  the  manu- 
facturers'. Visits  to  the  retail  stores  of  the  higher  class  will 
show  him  what  the  exclusive  trade  is  demanding.  Here  he 
finds  the  new  models  before  the  cheaper  manufacturers  have 
copied  them.  Polite  inquiries  and  interest  in  the  merchandise 
often  induce  the  salespeople  to  show  their  entire  line  of  new 
stock.  They  will  tell  what  garments  are  popular  and  what 
seems  to  be  the  best  style  which  the  season  has  to  offer. 
Often  department  heads  will  give  the  names  of  concerns 
from  whom  they  have  found  it  advantageous  to  purchase. 

To  continue  this  systematic  visiting  of  retail  stores  through 

all  classes,  from  the  higher  priced  to  the  cheaper,  is  to  gain 

a  knowledge  of  all  qualities  of  merchandise  on  the  market. 

From  his  own  experience  he  knows  the  class  of  his  trade  and 

the  demands  of  his  own  locality.     A  second  visit  to  the 

establishments  which  carry  corresponding  lines  to  his  own 

will  verify  his  first  impressions. 

Beginning  the  Buying.    When  he  has  finished  this  survey 

51 


RETAIL    BUYING 

he  has  full  knowledge  of  what  the  experienced  heads  of  the 
large  retail  stores  have  bought  and  their  estimate  of  the 
season's  styles.  He  is  now  ready  to  visit  the  sales  depart- 
ments of  the  manufacturers  and  jobbers.  To  his  own  pre- 
pared list  of  concerns  he  adds  those  which  he  has  obtained 
in  his  canvass  of  the  retail  stores.  The  wise  buyer  becomes 
a  shopper.  Before  placing  his  order  he  goes  to  as  many 
houses  as  possible.  A  comparison  of  prices  and  qualities 
is  necessary  for  advantageous  buying.  If,  for  example, 
women's  and  children's  coats  are  to  be  purchased,  the  com- 
plete line  of  women's  coats  is  inspected  before  beginning  to 
buy  for  the  children.  The  numbers  of  desirable  styles  are 
taken  and  notes  made  on  the  quality,  color,  and  price.  A 
comparison  of  these  notes  will  readily  show  where  the  orders 
can  be  given  with  greatest  profit. 

From  many  other  angles,  the  time  spent  in  looking  at  new 
lines,  comparing  values,  and  finding  places  where  the  prices 
are  right,  pays  well.  For  instance,  the  manufacturer  who 
has  a  good  line  one  season  may  be  entirely  off  the  following 
year.  Therefore,  each  season  the  buyer  has  to  do  over  again 
the  same  work  of  checking  up  the  good  lines  and  the  sources 
of  bargains.  While  on  a  recent  visit  to  New  York  a  Western 
buyer  received  a  request  to  buy  patent-leather  belts  to  retail 
at  twenty-five  cents.  All  the  regular  lines  showed  recent 
advances,  which  brought  the  price  to  twenty-four  dollars 
per  gross.  After  "shopping"  an  hour  or  so  the  same  number 
was  found  in  a  small  down-town  manufacturing  establish- 
ment at  nineteen  dollars.  The  quality  was  identically  the 
same. 

Frequency  of  Buying  Trips.    Many  ready-to-wear  buyers 

visit  the  New  York  market  once  a  month,  and  some  as  often 

as  once  a  week,  during  the  height  of  the  season.     On  such 

trips  the  buyer  should  visit  the  restaurants  and  theaters  in 

order  to  see  what  fashionable  women  are  wearing.     It  is  just 

62 


THE   MERCHANDIZING    PLAN 

as  much  a  part  of  his  work  as  visiting  the  manufacturers, 
and  perhaps  more  necessary. 

Seeing  What  Well-dressed  People  are  Wearing.  A  few 
weeks  before  writing  this  chapter  the  author  was  chatting 
with  the  proprietor  of  a  large  department  store  in  a 
Middle- West  city,  when  the  buyer  of  ready-to-wear  broke 
in  to  announce  his  return  from  a  trip.  In  reply  to  the 
obvious  question  as  to  the  success  of  his  trip,  the  buyer 
replied:  "I  had  a  fine  trip  and  got  a  lot  of  beautiful  stuff, 
but  I  nearly  ran  my  legs  off  doing  it.  I  was  so  dead  tired 
every  night  that  I  had  to  go  to  bed  as  soon  as  I  got  back  to 
the  hotel."  The  proprietor  exploded:  "Why  didn't  you  use 
your  head  more  and  your  feet  less?  If  you  had,  you  would 
have  had  a  more  pleasant  trip  yourself,  and  I  dare  say  a 
more  profitable  one  for  the  house.  The  next  time  take  it 
easier  during  the  day,  and  then  go  to  the  Ritz  for  dinner, 
and  to  the  theater  in  the  evening.  Don't  take  the  manufact- 
urer's word  for  the  styles.  Go  where  fashionable  women 
go  and  see  for  yourself  what  they  are  wearing." 


THE  STEPS  m   BUYING 

The  Buying  Process.  In  each  individual  purchase  of  mer- 
chandise there  are  certain  steps  as  the  buyer  considers  one 
after  another  the  various  considerations  affecting  the  in- 
dividual purchase.  The  general  procedure  is  the  following, 
but  the  relative  importance  of  each  factor  vnll  vary  w'ith 
each  line  of  merchandise  and  with  each  class  of  merchandise 
within  the  line.  In  some  lines  not  all  these  steps  are  present, 
while  in  others  different  ones  will  be  included. 

(a)  Determination  of  qualities,  workmanship,  and  finish. 
(6)  Selection  of  styles,  colors,  and  sizes. 

(c)  Decision  on  prices  and  deliveries. 

(d)  Arrangement  of  terms  and  discounts. 

In  addition  to  showing  the  steps  in  the  buying  process, 
such  a  classification  makes  it  possible  to  test  the  desirability 
of  each  individual  purchase.  For  instance,  if  two  articles 
are  offered,  one  of  which  is  entirely  satisfactory  from  the 
standpoint  of  the  first  three  steps,  and  another  from  that 
of  the  last  three,  which  would  be  the  preferable  purchase? 
One  purchase  might  be  90  per  cent,  satisfactory,  and  the 
other  only  60  per  cent,  satisfactory.  But  the  main  value  in 
such  a  classification  is  to  serve  as  an  exposition  of  the  buying 
procedure.  For  purposes  of  explanation  it  is  best  to  illus- 
trate with  a  particular  line.     As  women's  ready-to-wear  is 

54 


THE    STEPS    IN    BUYING 

probably  one  of  the  most  difficult  lines  to  buj',  that  has  been 
selected.  The  method  in  general,  is  equally  applicable  to 
any  type  of  merchandise. 

Women's  Readt-to-Wear 

Inexpensive  Grades 

1.  Decision  on  price  and  delivery 40% 

2.  Selection  of  styles,  colors,  and  sizes 30% 

3.  Determination  of  qualities,  workmanship,  and  finish. . . .  20% 

4.  Arrangement  of  terms  and  discounts 10% 

100% 
Medium-priced  Grades 

1.  Determination  of  qualities,  workmanship,  and  finish. .  . .  35% 

2.  Selection  of  styles,  colors,  and  sizes 30% 

3.  Decision  on  prices  and  dehveries 20% 

4.  Arrangement  of  terms  and  discoimts 15% 

100% 
High  Grades 

1.  Selection  of  styles,  colors,  and  sizes 35% 

2.  Determination  of  qualities,  workmanship,  and  finish. .  . .  30% 

3.  Decision  on  prices  and  dehveries 20% 

4.  Arrangement  of  terms  and  discoimts 15% 

100% 

Price  is  therefore  the  biggest  factor  in  the  inexpensive 
merchandise  and  is  twice  as  important  as  quality.  In  the 
medium-priced  merchandise  the  condition  is  practically 
reversed,  while  in  the  highest  grades  style  becomes  pre- 
dominant over  both.  In  all  cases  the  bargaining  for  terms 
and  discounts  is  left  until  after  all  the  other  steps  have  been 
completed. 

Subdivision  of  Steps.  Next  the  different  steps  may  be 
subdivided  so  as  to  show  what  each  one  includes.  Here 
again  it  is  necessary  to  take  a  specific  ease  in  order  to  show 

55 


RETAIL    BUYING 

the  subdivisions  because  of  tiie  fact  that  they  would  vary 
widely  with  each  time  and  each  grade  of  merchandise. 

SUBDIVISION   OF   STEPS 
Medium-peiced 

Ready-to-Wear  Merchandise 

1.  Determination  of  qualities,  workmanship,  and  finish. 

(a)    Testing  for  raw  material 6% 

(6)    Judging  process  of  manufacture 3% 

(c)  Estimating  cost  of  manufacture 4% 

(d)  Feeling  for  weight 2% 

(e)  Sizing  up  any  guarantee 6% 

(/)    Examining  for  flaws 5% 

(g)    Valuing  the  finish  (machine  or  hand) 4% 

{h)   Ascertaining  care  used  in  exterior  finish 2% 

(i)    Ascertaining  care  used  in  interior  finish 3% 

Total 35% 

2.  Selection  of  styles,  colors,  and  sizes. 

(a)    Selection  of  style  according  to  demand 5% 

(6)    Selection  of  style  accorcUng  to  latest  fashion .  5% 

(c)  Selection  of  style  according  to  amount  on  hand  5% 

(d)  Selection  of  color  according  to  demand 2% 

(e)  Selection  of  color  according  to  latest  fashion  .  2% 
(/)    Selection  of  color  according  to  amount  on  hand    2% 
ig)    Selection  of  sizes  according  to  previous  demand    6% 
(h)   Selection  of  sizes  according  to  changing  con- 
ditions    3% 

Total 30% 

3.  Decision  on  prices  and  deliveries. 

(a)  Judging  prices  which  can  be  obtained 6% 

(b)  Figuring  net  landed  cost 1% 

(c)  Detennining  gross  profit 2% 

(d)  Comparing  gi'oss  profit  to  cost  of  doing  business  6% 

(e)  Ascertaining  date  of  dehveries 2% 

(/)  Agreeing  on  date  of  delivery 3% 

Total 20% 

50 


THE    STEPS   IN    BUYING 

4.  Arrangement  of  terms  and  discounts. 

(o)   Obtaining  best  terms  and  discounts  under 

conditions 10% 

(6)    Comparing  terms  and  discounts  with  that  of 

other  houses  handling  similar  lines 2% 

(c)    Comparing  terais  and  discounts  with  quality, 

style,  and  price  to  get  relative  value 3% 

Total 15% 

Grand  total 100% 

Selection  of  Qualities,  Workmanship,  and  Finish.  The 
subdivisions  of  this  subject,  except  that  of  raw  material, 
are  almost  entirely  self-explanatory.  The  detailed  methods 
of  testing  the  raw  materials  are  given  in  Chapter  VI,  mider 
textiles.  It  is  here  that  long  experience  in  dry-goods,  and 
particularly  ready-to-wear,  with  some  knowledge  of  manu- 
facturing processes,  is  of  great  value.  It  is  obvious,  however, 
that  a  detailed  discussion  of  the  subject  would  require  sev- 
eral volumes;  so  that  the  author  must  content  himself,  much 
to  his  regret,  with  a  statement  of  the  various  points  to  be 
considered. 

Selection  of  Styles,  Colors,  and  Sizes.  Already  there  has 
been  discussed  as  a  preliminary  to  the  buying  trip  the  means 
of  getting  all  possible  information  on  styles  and  style  ten- 
dencies. It  is  well  to  point  out  here  that  the  buyer's  suc- 
cess comes  not  from  being  able  to  buy  a  complete  stock  of 
all  good  styles,  colors,  and  sizes,  but  from  buying  a  small 
representative  stock  to  suit  his  own  clientele,  and  so  avoid 
the  loss  from  overstock.  Every  merchant  knows,  too,  that 
the  showing  of  too  many  garments  will  spoil  a  sale.  The 
customer  becomes  confused  and  finally  decides  to  "look 
further."  The  next  store  sizes  her  up  and  shows  only  two  or 
three  of  the  most  likely  garments,  with  the  result  that  a 
satisfactory  selection  is  made  promptly.  Therefore  the  mer- 
chant in  a  small  city  may  compete  successfully  with  his 

57 


RETAIL   BUYING 

metropolitan  competitor  if  he  will  but  study  his  merchan- 
dise problem.  Small  but  intelligently  selected  stocks  are 
more  desirable  for  real  merchandizers. 

Prices  and  Deliveries.  After  having  decided  on  the  gen- 
eral price  that  the  article  under  consideration  falls  within, 
the  first  consideration  is  what  the  customer  will  give  for  an 
article..  One  ready-to-wear  buyer  has  a  habit  of  taking  one 
or  two  of  his  clerks  with  him  on  his  buying  trip.  When 
a  garment  is  shoAvn,  if  it  looks  suitable,  each  clerk  is  asked 
to  state  what  she  thinks  it  would  bring.  From  this  is  sub- 
tracted the  cost  price,  of  which  the  clerk  is  ignorant  so  far, 
and  the  gross  profit  is  obtained.  If  it  is  satisfactory,  the 
garment  is  considered;  otherwise  it  is  passed  by  at  once. 

If  the  garment  is  bought,  it  is  entered  up  on  the  buyer's 
buying-chart  along  with  the  selling-price.  This  data  is  for- 
warded at  once  to  the  buyer's  store,  if  he  is  away  on  a  buy- 
ing trip,  so  that  the  goods  may  be  priced  and  put  on  sale 
as  soon  as  received. 

Quantity  Prices,  Free  Deals,  and  Extra  Discounts.  Prac- 
tically all  manufacturers  and  jobbers  have  a  regular  scale 
of  prices  with  regard  to  quantity  orders.  This  quantity 
price  may  be  given  by  pricing  the  merchandise  per  single 
unit;  a  lower  price,  each,  per  dozen;  a  still  lower  price, 
each,  per  gross;  and  so  on.  Or  special  price  concessions  may 
be  given  in  the  form  of  free  deals.  Various  manufacturers, 
finding  that  many  of  the  smaller  retailers  object  to  quantity 
prices,  allow  the  big  buyer  two  to  three  dozen  free  goods 
with  each  gross  purchased.  By  follo^^^ng  such  a  plan  they 
are  enabled  to  advertise,  "One  price  to  all  dealers,"  and  to 
impress  the  smaller  buyer  with  the  fairness  of  the  proposi- 
tion. The  free  goods,  in  some  cases,  are  billed  as  advertis- 
ing. Many  manufactm'ers  of  toilet  goods  make  a  practice 
of  entering  the  free  goods  on  the  regular  bill  without  price 
extension. 

53 


THE    STEPS    IN    BUYING 

A  good  illustration  of  quantity  price  was  given  by  a 
manufacturer  of  cheese  during  this  past  season.  The  buyer 
of  a  well-known  New  York  City  store  was  favorably  im- 
pressed with  the  line,  but  the  store,  being  a  price-cutting 
establishment,  was  forced  to  ask  quantity  prices  on  all  mer- 
chandise purchased.  The  manufacturer  featured  a  one- 
price  policy,  but  he  needed  this  account.  In  order  to  meet 
the  buyer's  terms  the  sales-manager  closed  a  large  order 
with  the  firm,  agreeing  to  rent  space  from  the  store  for 
demonstration  purposes  and  to  employ  a  demonstrator. 
The  amount  which  was  paid  the  firm  equaled  the  difference 
between  the  regular  price  of  the  cheese  and  the  price  the 
buyer  was  willing  to  pay.  The  buyer  did  not  care  how  he 
got  the  price,  and  this  plan  offered  an  ideal  way  for  the 
manufacturer  to  get  around  quantity  prices. 

The  extra  discount  also  furnishes  a  method  of  getting 
around  the  quantity  price.  The  merchant  who  buys  in 
small  quantities  gets  2  to  3  per  cent.,  depending  upon  the 
kind  of  merchandise  being  bought.  Another,  buying  in 
large  quantities,  gets  3  to  5  per  cent.  A  third,  who  buys 
even  larger  quantities,  may  receive  7  or  10  per  cent.  To 
avoid  all  chance  of  detection  all  bills  are  marked,  "Terms 
as  had."  It  should  be  remembered,  however,  that  all  firms 
making  a  practice  of  marking  bills  as  described  do  not  make 
a  practice  of  giving  quantity  prices,  although  a  large  pro- 
portion do. 

It  is  generally  understood  that  no  manufacturer  can  make 
a  single  article  as  economically  as  five  hundred.  Nor  can  a 
sales  man  or  a  sales-manager  sell  one  article  as  cheaply  as 
one  thousand.  The  larger  orders  require  not  only  less  selling 
expense  proportionately,  but  less  clerical  work  per  article. 
They  may  be  bunched  and  turned  out  by  the  thousand,  re- 
ducing the  cost  of  manufacturing,  as  well  as  handling  and 

shipping.     The  smaller  buyers,  however,  are  usually  an- 

59 


RETAIL    BUYING 

tagonistic  toward  quantity  prices,  while  of  course  the  large 
buyers  favor  it.  It  is  possible  for  a  number  of  the  smaller 
buyers  to  co-operate  in  the  purchase  of  their  merchandise 
in  quantity,  taking  advantage  of  the  quantity  price  and 
placing  each  individual  merchant  in  a  position  to  compete 
with  his  larger  competitor. 

Clearance  Prices.  Manufacturers,  as  well  as  retailers, 
find  clearance  sales  necessary.  In  ready-to-wear  merchandise, 
at  the  close  of  a  retail  buying  season,  from  November  20th 
to  January  30th,  and  May  15th  to  July  15th,  manufacturers 
are  anxious  to  close  out  all  remaining  merchandise  and  de- 
vote their  time,  energy,  and  money  to  lines  for  the  coming 
season.  Therefore  many  will  dispose  of  goods  on  hand  at 
actual  cost,  and  in  some  cases  below  cost.  On  December 
1st  one  Wisconsin  retailer  bought,  at  $10.75  net,  one  hundred 
coats,  identical  in  every  way — cloths,  styles,  and  numbers — 
with  coats  which  had  been  purchased  earlier  in  the 
season  priced  at  $15,  $16.50,  $18,  and  $21.50.  These  coats 
were  marked  at  the  same  prices  as  the  original  numbers, 
namely  $19.75  to  $35,  and  after  Christmas  all  that  re- 
mained found  ready  sale  when  reduced  to  $15  to  $22.50. 
On  February  1st  fifty  more  of  the  same  numbers  were  pur- 
chased at  $5.90  net,  and  these  were  marked  and  sold  at 
$10  net.  The  customers  received  extraordinary  values, 
and  the  merchant  realized  large  profits. 

Terms  and  Discounts.     The  cash  discount,  a  premium 

for  cash,  is  given  too  little  attention  by  many  buyers.     A 

department-store  buyer,  of  eighteen  years'  experience,  was 

overheard  remarking  to  a  salesman,  "I  have  nothing  to  do 

with  the  discount,  and  I  do  not  care  whether  it  amounts  to 

1  or  10  per  cent.     The  office  gets  all  credit  for  discounts." 

This  buyer  acknowledged  that  he  was  not  interested  because 

he  did  not  receive  credit.    Yet  he  failed  to  ask  for  the  net 

price,  which  is  a  wrong  way  to  merchandize. 

60 


THE    STEPS    IN    BUYING 

A  large  Cleveland  ready-to-wear  merchant  made  the  state- 
ment early  last  year:  "I  am  a  successful  merchant  because 
I  take  advantage  of  every  discount  offered.  Last  season 
my  profits  amounted  to  thousands,  and  practically  every 
penny  was  made  by  taking  advantage  of  the  discounts." 
Another  merchant,  of  Oshkosh,  Wisconsin,  while  in  New 
York  on  a  buying  trip,  remarked,  "I  am  perfectly  willing  to 
accept  my  discounts  as  profit  from  my  business,  and  I  shall 
be  satisfied  if  that  is  all  I  receive  during  the  year." 

These  discounts  amount  from  1  to  10  per  cent.,  depending 
upon  the  kind  of  merchandise.  Staple  commodities  usually 
carry  a  discount  of  2  per  cent.,  ten  days,  meaning  that  the 
purchaser  is  entitled  to  2  per  cent,  if  the  bill  is  paid  in  ten 
days'  time.  This  is  equivalent  to  36  per  cent,  per  annum. 
Other  merchandise  carries  better  discount — 5,  7,  and  10  per 
cent.;  7  per  cent.,  if  paid  within  ten  days,  nets  an  interest 
rate  of  126  per  cent.  Some  few  manufacturers  make  a  prac- 
tice of  selling  merchandise  at  list  price,  retail,  less  30,  40,  or 
50  per  cent.,  less  5  or  6  per  cent.,  and  then  less  2  per  cent, 
for  cash.  A  five-dollar  pen  would  be  subject  to  40  per  cent, 
discount,  or  $2.  From  this  would  be  deducted  6  per  cent., 
which  leaves  $2.82,  and  then  2  per  cent,  of  the  remainder, 
or  five  cents,  making  the  net  cost  $2.72.  These  figures  show 
that  we  are  paying  an  unusually  high  rate  of  interest  if  we 
are  not  taking  advantage  of  discounts,  when  we  consider 
money  may  be  borrowed  for  5  or  6  per  cent. 

The  term  dating  means  to  date  into  the  future.  For  ex- 
ample, a  grocer  buys  a  car  of  fruit,  with  a  dating  of  ninety 
days,  subject  to  2  per  cent,  per  month  if  paid  before  due. 
This  is,  however,  a  very  unusual  happening  in  that  line. 
Frequently  lines  of  merchandise  carried  by  the  department 
store  may  be  bought  under  such  conditions,  although  one- 
half  of  1  per  cent,  is  allowed,  as  a  rule,  instead  of  2,  in 

addition  to  the  cash  discount.    Such  extra  or  forward  dating 

61 


RETAIL    BUYING 

is  usually  given  where  the  account  is  large  and  the  manu- 
facturer is  extremely  anxious  for  the  business,  or  where  the 
manufacturer  must  unload  his  stock.  It  is  common  in  cer- 
tain lines.  For  instance,  the  usual  terms  in  the  white-goods 
trade  is  2  per  cent.,  ten  days,  sixty  days'  extra  dating.  If 
the  goods  are  sold  for  delivery  on  September  1st,  they  are 
billed  as  if  sold  two  months  later.  The  retailer  is  entitled 
to  the  cash  discount  of  2  per  cent,  if  he  pays  the  bill  by 
November  10th,  but  if  he  pays  it  by  September  10th  he  gets 
an  extra  1  per  cent.,  which  is  really  interest  for  the  two 
months  anticipated  at  6  per  cent,  per  annum. 

Advance  Buying.  Frequently  traveling-salesmen  tell  of 
meeting  merchants  who  refuse  to  place  advance  orders  for 
merchandise.  These  may  be  dealers  in  hardware,  shoes, 
clothing,  women's  wear,  dry-goods,  groceries,  or  jewelry, 
and  may  think  that  they  have  good  reason  for  refusing. 
They  may  believe  that  the  coming  season  will  be  late  and 
that  they  will  have  plenty  of  time  to  place  their  orders  later, 
with  every  assurance  of  having  the  merchandise  delivered 
on  time.  Possibly  they  judge  that  the  market  shows  a 
tendency  for  a  decline  in  prices,  and  that  they  will  save 
money  by  buying  later.  .  Should  their  judgment  be  found 
incorrect,  and  should  the  season  turn  out  to  be  early,  with 
an  advancing  price  for  the  commodity,  the  merchant,  of 
course,  is  the  loser.  Even  though  the  prices  are  not  advanced, 
there  will  be  a  loss  because  of  the  early  sales  that  will  be 
lost.  Regardless  of  what  the  season  may  be,  these  dealers 
fail  to  consider  that  many  desirable  patterns  and  styles  will 
be  closed  out  by  the  time  they  get  ready  to  buy,  and  that  they 
must  take  what  is  left.  Sometimes  desirable  merchandise 
cannot  be  found  at  a  moment's  notice,  and  in  all  cases 
some  time  must  be  allowed  for  deliverj\ 

On  the  other  hand,  some  merchants  are  easily  imposed 

upon.    The  traveling-men  come  in,  show  their  samples,  and 

62 


THE    STEPS    IN    BUYING 

take  orders  tor  the  greater  portion  of  merchandise  to  be 
used  during  the  season.  The  merchant,  believing  that  the 
season  will  be  an  early  one,  or  that  the  prices  will  be  ad- 
vanced, decides  to  protect  himself.  Some  years  ago  the 
cotton  market  was  unusually  high.  "Hope"  domestic  was 
selling  at  nine  and  one-half  cents,  wholesale.  Gingham, 
percale,  and  prints  were  priced  accordingly.  A  successful 
retail  merchant  south  of  Louisville  decided  that  the 
prices  were  going  still  higher  and  that  he  could  well  afford 
to  protect  himself.  The  market  did  go  up  a  few  points 
after  the  merchant  had  filled  his  reserve  stock-rooms  and 
all  the  available  space  in  his  store  with  cotton,  but  before 
the  season  had  well  started  the  bottom  dropped  out  of  the 
market  and  the  merchant  realized  that  he  was  caught 
napping.  Every  attempt  was  made  to  unload.  The  mer- 
chant had  guessed  wrong.  He  had  overbought  and  had 
ruined  himself.  Too  heavy  advance  buying,  no  matter  what 
the  season  happens  to  bring  forth,  is  disastrous.  It  means 
dollars  tied  up  which  should  be  working  in  other  stock. 

The  wise  merchant  plays  safe.  He  profits  through  the 
example  of  others.  Enough  merchandise  is  bought  to  take 
care  of  the  opening  trade,  should  an  early  season  develop, 
and  new  goods  are  bought  continually  throughout  the  season. 
This  assures  him  of  being  taken  care  of  in  case  merchandise 
should  later  prove  difficult  to  buy;  while  it  does  not  mean 
a  big  loss  should  the  market  drop.  The  interest  on  the  work- 
ing dollars  will  more  than  offset  any  profit  that  is  to  be  made 
on  a  gamble  at  buying  for  higher  prices.  This  is  conserva- 
tism, through  which  success  is  won. 

Cancelations  and  Returns.  Manufacturers  and  jobbers 
are,  to  a  great  extent,  responsible  for  the  majority  of  can- 
celations and  returns  in  every  business.  A  short  time  ago 
a  salesman  visited  a  well-knowTi  department  store  with  a 

sample  line  of  waists.    Among  the  lot  shown  were  three  es- 

63 


RETAIL   BUYING 

pccially  good  values  in  Japan  silk  and  crepe  do  Chine.  One 
Japan  silk,  made  of  a  five  "mumy  "  Jap.,  very  full,  with  large 
collar  and  novelty  cuffs,  was  priced  so  low  that  the  buyer 
ordered  one  hundred  dozen,  to  be  shipped  in  three  different 
shipments.  In  order  to  make  sure  that  he  would  get  the 
same  quality  of  silk  he  kept  the  sample  shown.  Six  weeks 
later  one-half  of  the  order  was  received.  Upon  investigation 
and  comparison  with  the  original  sample,  it  was  found  that 
a  three  "mumy"  Japan  silk  had  been  substituted,  making 
a  difference  of,  approximately,  sixty  cents  in  the  actual 
value  of  the  waist.  The  entire  shipment  was  reboxed  and 
held  until  the  manufacturer  sent  his  check  to  cover  freight 
charges  and  drayage.  The  manufacturer  had  taken  a  chance 
on  substituting,  in  the  hope  that  some  subordinate  would 
open  and  mark  the  merchandise  and  that  the  mistake  would 
not  be  noticed  until  the  payment  had  been  made. 

Many  mistakes  will  occur  in  the  cloak-and-suit  business, 
unless  merchandise  is  bought  of  reliable  houses.  When  buy- 
ing, charts  are  used  to  show  what  sizes  are  needed  in  the 
various  colors,  and  unless  the  merchandise  or  receipt  is 
checked  with  the  charts,  the  buyer  will  soon  discover  that 
many  of  his  suits  or  coats  are  the  same  size  and  color,  fre- 
quently size  34  or  36.  The  manufacturers  take  the  liberty 
of  shipping  any  size  or  color  that  they  happen  to  have  on 
hand,  hoping  that  the  marker  will  place  the  merchandise  in 
stock  without  an  investigation.  It  is  also  found  that  many 
damaged  garments  slip  in.  No  retailer  can  afford  to  take 
the  chance  of  failing  to  examine  and  check  accurately  all 
merchandise  received,  never  failing  to  return  merchandise 
if  it  does  not  come  up  to  specifications  and  requirements. 

Some  grocery  and  hardware  men  complain  that  they  do 

not  receive  merchandise  which  has  been  on  order  several 

months.    Investigations  show,  especially  at  the  present  time, 

that  many  times  orders  are  being  held  back  and  more  recent 

64 


THE    STEPS   IN    BUYING 

orders  filled  for  which  advance  prices  were  secured.  When 
placing  the  order,  an  agreed  time  of  delivery  should  be  en- 
tered on  the  order,  and  if  the  merchandise  is  not  delivered  on 
time  inquiry  should  be  made  at  once.  A  follow-up  of  fre- 
quent letters  of  inquiry  will  often  produce  results. 

Unfortunately,  there  are  just  as  many  unscrupulous  re- 
tailers as  manufacturers.  There  are  some  who  pride  them- 
selves on  taking  advantage  of  a  manufacturer  or  a  jobber. 
Such  retailers  deserve  just  what  they  give,  and  no  manu- 
facturer could  be  blamed  for  reporting  the  offense  to  the  vari- 
ous trade  associations.  A  manufacturer  has  a  perfect  right 
to  expect  the  same  kind  of  treatment  he  gives  his  customers. 

Allowing  the  Salesman  to  Buy  Your  Business.  The 
young  buyer,  breaking  into  the  New  York  City  market,  is 
constantly  impressed  with  the  number  of  salesmen  who  are 
anxiously  waiting  to  buy  his  business.  Hotel  lobbies  are 
full  each  morning  of  salesmen  who  are  waiting  to  pay  for 
some  buyer's  breakfast  in  the  hope  that  he  will  be  able  to 
get  the  firm's  business.  Other  salesmen  are  anxious  to  make 
engagements  for  luncheon,  and  to  take  in  the  sights  of  the 
city  in  the  evening.  They  seem  to  have  the  idea  that  the 
entertaining  is  necessary  if  they  expect  to  get  the  business. 
It  is  perfectly  true  that  some  few  (poor,  unfortunate,  de- 
luded) buyers  get  the  impression  that  in  order  to  succeed 
as  buyers  they  must  take  everything  that  comes  their  way. 
They  make  a  point  of  sponging  on  every  salesman  possible. 
They  never  feel  that  they  are  placing  themselves  under  ob- 
ligation to  the  salesman,  or  that  they  must  buy  his  mer- 
chandise, regardless  of  what  they  are  capable  of  finding  in 
other  places. 

Several  months  ago,  in  a  Wisconsin  department  store,  one 

of  the  young  women  went  to  the  merchandizer  with  an  order 

to  be  signed.    It  was  for  merchandise  bought  of  a  new  house, 

and  amounted  to  several  times  what  had  been  bought  sev- 

5  65 


RETAIL   BUYING 

eral  months  previously.  She  was  so  anxious  to  get  the  order 
signed  that  the  merchandizer  began  to  suspect  something 
wrong.  Therefore  he  had  one  of  the  other  girls  in  the  de- 
partment look  up  the  merchandise.  Enough  merchandise  to 
last  six  weeks  was  found  in  reserve  stock.  The  young  buyer 
declared  she  had  been  unable  to  find  any.  Later  it  developed 
that  the  salesman  had  entertained  the  young  lady,  and  she, 
in  turn,-  had  agreed  to  see  that  he  got  an  order.  In  other 
words,  she  was  willing  to  make  her  employer  pay  for  the 
good  time  she  had  had  the  evening  before. 

This  is  exactly  what  the  buyer  attempts  to  do  when  he 
accepts  a  salesman's  too  lavish  expenditure.  Many  mer- 
chants make  it  a  practice  to  entertain  their  own  buyers  at 
their  own  expense  when  on  buying  trips,  in  order  to  insure 
the  right  buying  of  the  merchandise.  One  of  New  York's 
most  successful  retail  buyers  remarked,  "When  I  go  into 
business  I  shall  never  allow  any  employee  to  accept  as  much 
as  a  cigar  from  any  one  with  whom  I  am  doing  business, 
or  with  whom  there  is  a  chance  of  their  having  any  business 
relations."  This  is  a  good  rule  to  follow,  and  all  buyers, 
both  small  and  large,  should  give  it  due  consideration. 


VI 

DETERMINING   QUALITIES 

The  Importance  of  Ability  to  Judge  Quality.  The 
quality  of  a  commodity  is  the  characteristic  which  dis- 
tinguishes it  from  others  of  a  class.  Much  of  a  buyer's 
success  must  depend  upon  his  ability  to  recognize  quality. 
He  is  not  capable  of  comparing  merchandise  intelligently 
unless  he  is  a  competent  judge  of  the  various  degrees  of 
excellence.  The  manufacturer  knows  his  goods  from  every 
standpoint.  The  buyer  must  be  no  less  well  posted  as  to 
quality.  He  must  possess,  in  addition,  a  knowledge  of  how 
goods  are  manufactured,  the  cost  of  production,  and  raw 
materials,  market  conditions,  and  many  other  factors  affect- 
ing quality. 

Since  each  buyer's  establishment  caters  to  a  definite  char- 
acter of  trade,  the  policy  of  the  house  must  determine  what 
quality  of  merchandise  is  to  be  handled.  For  example,  a 
certain  department  store  in  one  of  the  larger  Southern  cities 
caters  to  the  colored  population  and  the  humbler  classes  of 
white  people.  It  follows  that  all  merchandise  bought  must 
be  selected  with  the  idea  of  meeting  the  tastes  and  require- 
ments of  this  trade.  The  higher  qualities  of  merchandise, 
or  more  conservative  styles  and  patterns,  would  not  sell. 
Naturally,  there  are  other  stores  in  the  same  locality  cater- 
ing to  the  higher  classes  of  trade. 

Textiles.  The  study  of  textiles  and  the  tests  for  the 
various  fibers  is  important  both  for  the  store  buyer  and  the 

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RETAIL    BUYING 

salesman,  and  serves  as  the  best  example  of  the  thorough- 
ness with  which  a  buyer  should  study  the  methods  of  testing 
for  quality.  The  advancing  costs  of  raw  materials  and 
manufacturing  have  had  a  tendency  to  cause  more  substitu- 
tion than  ever  before.  Many  treated  cottons  are  sold  as  linen ; 
and  much  cotton,  especially  the  Peruvian  cotton,  which  feels 
and  looks  like  wool,  has  been  mixed  with  the  wool  fibers  and 
sold  as  an  all-wool  material.  The  buyer  should  be  familiar 
with  the  construction  of  the  various  fibers  as  well  as  with  the 
different  qualities  of  the  textiles,  and  understand  thoroughly 
the  simple  tests  used  in  distinguishing  one  from  another. 

There  are  two  classes  of  textile  fibers,  vegetable  fibers 
and  animal  fibers.  Wool  and  silk  are  animal  fibers,  while  the 
vegetable  fibers  are  composed  of  cotton,  flax,  hemp,  jute, 
ramie,  China  grass,  and  many  others.  Each  of  these  fibers, 
having  its  own  peculiar  characteristics,  may  be  readily  de- 
tected upon  careful  examination.  In  many  cases  a  small 
magnifying-glass,  called  a  linen-tester,  is  the  only  means 
necessary  to  make  a  test. 

Cotton.  Cotton  is  commonly  used  for  imitating  other 
more  expensive  vegetable  fibers.  It  appears,  when  observed 
through  a  glass,  like  a  wide,  flattened  ribbon,  and  is  composed 
mainly  of  cellulose.  The  fiber  can  stand  a  very  high  tempera- 
ture without  decomposition,  but  burns  with  a  flame  when 
ignited,  gives  off  little  odor,  and  leaves  a  gray  ash. 

Wool.  Wool  is  composed  of  carbon,  oxygen,  and  nitrogen. 
Under  a  glass  it  appears  as  a  compact  miiform  rod,  overlaid 
with  scales,  which  appear  to  be  set  one  into  another,  very 
much  like  the  scales  of  a  snake.  Some  of  these  scales  are 
smooth  and  lie  flat,  as  in  mohair,  where  few  serrations  appear; 
while  others  are  noticeably  rough.  The  wool  fiber  bums 
slowly,  with  a  dull  flame,  or  merely  melts  together,  leaving 
a  bulb  of  hard  browTi  ash,  giving  off  a  very  disagreeable 
odor  similar  to  the  burning  of  hair. 


DETERMINING   QUALITIES 

Cotton.  As  it  is  the  most  inexpensive,  cotton  is  the  prin- 
cipal fiber  used  in  combination  with  wool.  Should  either 
the  burning  test,  which  is  a  simple  chemical  test,  or  the  ex- 
amination of  the  fibers  under  a  glass  fail  to  prove  the  origin 
of  the  fiber,  there  are  several  other  chemical  tests  which 
may  be  employed.  One  of  the  simplest  of  these,  and  one 
of  the  most  commonly  used,  is  what  is  known  as  the  "boiling- 
out"  test.  A  solution,  consisting  of  one  ounce  of  caustic 
soda  dissolved  in  a  pint  of  water  is  prepared,  and  a  sample 
of  the  material  is  boiled  in  this  for  fifteen  minutes.  The  wool 
will  dissolve,  while  the  cotton  part  remains  in  a  slightly 
yellowish  state.  Treated  with  cold  sulphuric  acid,  it  is  found 
that  the  cotton  will  dissolve  while  the  wool  remains  intact. 

Silk.  This  is  the  most  valuable  of  all  fibers,  and  conse- 
quently it  is  the  most  imitated.  Many  processes  have  been 
invented  to  preserve  the  appearance  in  imitation  and  to 
cheapen  the  product.  The  pure  silk  appears  as  a  smooth 
cylinder,  hollow  in  its  construction,  usually  appearing  as 
two  distinct  threads.  Artificial  silks,  made  of  cotton,  wood 
pulp,  and  other  vegetable  fibers,  and  wild  and  weighted  silks, 
are  used  as  substitutes  for  the  pure-thread  silk.  The  arti- 
ficial silks,  being  composed  of  cellulose,  are  easily  distin- 
guished from  the  animal  fiber.  The  pure-silk  fiber  burns 
like  wool,  seeming  to  melt  slowly,  giving  off  a  disagreeable 
odor,  while  the  vegetable  fiber  burns  like  cotton,  more  rapidly, 
leaving  no  odor.  Weighted  silks  give  off  more  ash,  and  the 
entire  thread  retains  its  shape,  and  when  heavily  adulter- 
ated it  glows  red  until  shaken  or  crushed.  Artificial  silk, 
when  exposed  to  moisture,  becomes  weak  and  is  easily  pulled 
apart,  while  pure  silk  remains  strong.  Another  test  is  to 
take  several  strands  of  yarn  and  chew  them  thoroughly. 
The  artificial  silk  will  be  reduced  to  a  pulp,  while  the  pure 
silk  will  retain  its  original  formation.    The  magnifying-glass 

shows  the  pure-silk  threads  twisted,  while  the  artificial  is 

69 


RETAIL   BUYING 

sho^^^l  to  consist  of  a  number  of  parallel  strands.  The  luster 
of  the  artificial  silk  is  much  higher  than  the  pure  silk. 

The  acid  tests  may  be  used  to  good  advantage  in  distin- 
guishing the  fibers.  Nitric  acid  will  turn  silk  yellow  very 
quickly  and  dissolve  it  in  a  short  time,  but  will  not  stain  or 
damage  cotton.  A  2rper-cent.  solution  of  caustic  soda  will 
dissolve  silk,  while  cotton  or  artificial  silk  remains  unaffected. 

Silk  and  Wool.  These  two  textiles  are  very  often  mixed  in 
novelty  material.  The ' '  linen-tester ' '  furnishes  excellent  means 
of  distinguishing  the  presence  of  either.  However,  as  both  are 
animal  fibers,  the  simple  tests  are  not  sufficient  to  tell  the  rela- 
tive amount  of  each.  A  solution  of  zinc  chloride,  to  which  a 
small  quantity  of  zinc  oxide  is  added,  will  dissolve  entirely  the 
silk  and  only  part  of  the  wool.  This  will  determine  the  forma- 
tion of  the  textile  and  show  the  proportion  of  each  fiber. 

Linen.  Flax  thread,  from  which  linen  is  spun,  is  a  vege- 
table fiber.  It  appears  jointed,  like  a  cornstalk,  vnth  cross- 
marks  showing  on  the  fiber  and  no  natural  twist  found.  It 
is  lustrous  and  oily,  being  much  stronger  than  the  cotton. 
Cotton  cloth  tears  easily,  with  a  muffled  sound,  while  more 
force  is  required  to  tear  linen  of  equal  thickness,  and  the 
tearing  gives  off  a  shrill  sound.  The  edges  of  torn  cotton 
show  short,  curly  ends,  as  does  a  cotton  thread  when  pulled; 
the  edges  of  the  linen  appear  straight  and  outstretched. 

Linen  is  much  heavier  than  cotton,  bulk  for  bulk,  and  it 
has  a  cold,  leathery  feel  which  is  absent  with  cotton.  The 
cotton  retains  the  heat  much  longer  than  the  linen.  By 
holding  a  cotton  cloth  to  the  light  it  will  be  noted  that  the 
weave  is  quite  uniform,  while  the  threads  of  the  linen  are  very 
uneven  and  streaked.  A  drop  of  oil  touched  to  linen  which 
is  free  from  dressing  will  appear  almost  transparent  when 
held  to  the  light,  while  cotton  remains  less  so. 

If  further  tests  are  necessary  it  will  be  found  that  linen 

will  stand  the  test  of  sulphuric  acid  much  better  than  cotton. 

70 


DETERMINING   QUALITIES 

A  sample  of  the  material,  after  having  been  washed  care- 
fully to  remove  any  dressing,  is  dipped  in  concentrated  sul- 
phuric acid.  After  a  two-minute  submersion,  if  the  sample 
is  dried  on  filtered  paper,  it  will  be  found  that  the  cotton 
has  dissolved  in  the  acid  and  the  linen  remains.  By  weighing 
the  sample,  both  before  and  after,  the  exact  proportion  of 
each  may  be  discovered. 

Mercerized  Cotton.  The  mercerized  finish  is  produced 
through  a  treatment  of  caustic  soda.  It  is  sometimes  sold 
as  artificial  silk  because  of  the  similarity.  The  manufact- 
uring processes  of  the  two  products  are  altogether  different. 
The  solution  of  caustic  soda  used  in  mercerized  cotton 
would  dissolve  artificial  silk.  The  simplest  test  is  to  wet  the 
fibers;  artificial  silk  will  lose  most  of  its  strength,  while 
mercerized  cotton  will  not  be  affected  by  the  moisture. 

Quality  of  Fiber.  The  strength  and  quality  of  a  fiber 
may  be  determined  by  unraveling  yarn  drawn  from  a  fabric. 
Long,  healthy  fibers  are,  of  course,  much  stronger  than 
shortened  and  weakened  ones.  Cotton  fibers  range  from 
three-quarters  of  an  inch  to  one  and  three-quarters;  wool 
fibers  may  vary  one  to  three  inches  in  length;  linen  about 
eighteen  inches;  and  silk  in  one  continuous  thread,  as  when- 
ever one  cocoon  thread  breaks  (in  the  reeling)  or  becomes 
exhausted,  another  is  twisted  around  the  end  of  the  ruiming- 
thread  and  it  becomes  a  component.  After  pulling  a  few 
threads  in  each  direction  (both  the  warp  and  woof) ,  and  mak- 
ing an  examination  of  these  under  the  glass,  it  is  possible  to 
determine  not  only  the  character  of  the  fiber  and  the  quality 
of  the  yam,  but  also  the  actual  weave. 

Quality  of  Yams.  Cloths  may  be  made  from  either  one-, 
two-,  or  three-ply  yarns  (when  two  or  more  single  yarns  are 
twisted  together  they  make  ply  yarns).  A  ply  yarn  is  more 
durable  and  stronger  than  either  the  single  yarn  or  the  carded 
yarns.     Long  fibers  are  combed  and  made  up  into  worsted 

71 


RETAIL    BUYING 

yams.  The  fibers  lie  parallel.  The  shorter  fibers  are  carded 
and  are  used  in  making  woolens.  The  fibers  run  in  every  di- 
rection. These  same  weaves  may  be  noted  in  both  the  cotton 
and  the  silk.  It  stands  to  reason  that  the  highest  grade  silks 
are  made  from  several  strands  of  cocoon  silk  which  have  been 
combed  out  parallel,  and  the  poorest  qualities  from  the  waste 
and  short  strands  in  the  same  manner  as  the  woolen. 

Quality  of  Fabric.  The  closeness  and  firmness  of  the 
weave,  as  well  as  the  quality  of  yarn  used,  denote  the  quality 
of  the  fabric.  Weightings  and  fillings,  such  as  starch,  can 
be  added  so  as  to  make  the  material  appear  heavier,  but  at 
the  same  time  they  cheapen  the  quality.  Holding  the  fabric 
to  the  light,  or  rubbing  it  together,  will  soon  show  whether 
weighting  or  filling  has  been  used.  Tearing  will  cause  dust  to 
fly  from  the  weighted  materials.  The  firmness  may  be  ascer- 
tained by  pulling  the  thumb  and  forefinger  down  the  weave. 

"  Counts."  One  of  the  tests  of  the  quality  of  a  piece 
of  material  is  made  by  counting  the  threads  per  inch  under 
a  magnifying-glass.  This  is  specially  applicable  to  domestics, 
percales,  ginghams,  and  other  similar  material.  In  general, 
the  higher  the  "count"  the  better  the  quality  and  the  more 
durable  the  material. 

As  an  illustration  the  following  figures  will  give  an  esti- 
mate of  the  average  "counts"  found  in  various  materials: 

Nainsook 80x104 

Persian  lawn 120x132 

Percale 68x80 

Apron  gingham 48x56 

Gingham 80x84 

Cotton  pongee 80x96 

Domestics 76x84 

Cotton  sheeting 68x80 

Handkerchief  Hnen 84x84 

Unbleached  embroidery  linen 28x28 

Table  damask 60x72 


DETERMINING    QUALITIES 

These  figures  have  been  obtamed  through  the  actual  count 
of  various  quaHties  of  stock  material,  and  will  serve  a  buyer 
as  a  guide.  Percales,  for  example,  will  run  from  64x68 
(inexpensive  grades)  to  80x80  (better  quality). 

Furs.  Another  good  example  of  the  methods  of  testing 
for  quality,  but  by  radically  different  methods,  is  found  in 
connection  with  the  buying  of  furs.  The  fur  expert  can 
pick  up  a  piece  of  fur — before  manufacturing — and  tell  the 
very  region  where  the  animal  was  trapped,  and  at  what 
time  of  the  year  the  trapping  was  done.  The  farther 
north  the  animal  is  trapped  the  heavier  and  thicker  will 
be  the  quality  of  the  hair  and  the  lighter  in  weight  will  be 
the  skin.  A  prime  Southern-caught  skin  may  be  superior 
in  color  to  a  Northern  pelt  caught  out  of  season,  though 
no  Southern  skin  at  its  best  can  compare  with  the  North- 
ern caught  in  its  prime.  Western  and  Southwestern  skimk 
skins  are  usually  more  brownish  in  color  and  coarser-haired 
than  those  from  Northern  districts.  Most  fur-bearing  ani- 
mals live  in  holes  in  the  ground,  and  when  caught  out  of 
season  (November  15th  to  January  15th)  the  animal  either  has 
not  grown  its  winter  coat  or  it  has  worn  off  most  of  the 
guard-hairs  going  in  and  out  of  its  lair.  The  pelts  trapped 
before  the  season  have  stiff  and  bristly  hair  and  very  little 
under-fur. 

Classes  of  Furs.  Broadly  speaking,  furs  may  be  divided 
into  general  classes.  The  first  division  distinguishes  the 
texture  of  the  fur,  while  the  second  distinguishes  the  treat- 
ment of  finishing  of  the  fur. 

Short-haired  Furs.  The  short-haired  furs  are  distin- 
guished in  quality  by  the  fullness  (amount  of  hair  per  inch), 
depth  and  texture  of  the  fur,  and  (with  fur-bearing  animals 
having  guard-hair)  the  amount  and  quality  of  the  guard- 
hair.  Among  these  may  be  found  the  British  Columbia 
mink.  Northern  mink,  Japanese  mink,  otter,  beaver,  kolin- 

73 


RETAIL   BUYING 

sky,  Persian  lamb,  broad-tail,  muskrat,  and  others.  The 
lack  of  this  under-fur  is  a  serious  fault  with  such  skins  as 
marmot,  hare,  seal,  or  Russian  pony,  because  when  turned 
in  it  frequently  shows  the  pelt  on  the  edges  of  a  garment. 

Long-haired  Furs.  The  long-haired  furs  may  be  judged 
according  to  quality,  the  length,  the  fullness,  and  the  texture 
of  the  hair.  Among  these  are  found  the  lynx,  cat-lynx,  fox 
(American,  cross,  black,  red,  etc.),  wolf,  dog,  raccoon,  opos- 
sum, skunk,  fisher,  wolverine,  bear,  goat,  stone-marten,  and 
others. 

Dyed  and  Natural.  The  second  division  of  furs  may  be 
classed  as  the  dyed  and  the  natural.  The  better  qualities 
and  more  perfect  skins  are  usually  made  up  in  their  natural 
state;  while  the  poorer  qualities,  less  perfect  skins,  and  off- 
colored  skins  may  be  dyed,  in  which  case  the  entire  skin  is 
dipped  in  the  dye;  or  blended,  which  is  done  by  dipping 
only  the  hair  in  the  dye;  or  topped,  w^hich  means  brushing 
the  tips  of  the  hair.  The  natural  furs  may  be  distinguished 
by  the  softness  of  the  pelt,  the  texture  of  the  hair,  and  the 
color. 

Leather.  The  length  of  the  pelt  has  much  to  do  with 
the  texture  and  quahty  of  the  fur.  The  fur  with  the  strong 
leather  usually  has  hair  that  is  very  delicate  and  which  will 
wear  off  very  easily;  w^hile  the  more  tender  the  leather  the 
more  durable  the  hair.  The  defects  in  the  dressing  may  also 
be  detected  in  the  leather.  Stiff  skins,  lumpy  pelts,  or  brittle 
spots  are  caused  when  the  pelt  is  not  properly  dressed  or 
has  been  caught  out  of  season.  Frequently  skins  such  as 
beaver  are  dressed  so  as  to  leave  some  fat  on  the  pelt.  This 
fat  is  cooked  in  the  sun  or  drier,  causing  brittle  places  in  the 
pelt.  These  brittle  places  are  apt  to  break  as  soon  as  the  fur 
is  put  into  use. 

To  a  great  extent  nature  endeavors  to  protect  animals  by 
giving  to  the  skins  the  color  of  their  surroimdings.     The 

74 


DETERMINING    QUALITIES 

Russian  ermine's  summer  coat  is  an  agreeable  brown,  which 
changes  to  snowj^-white  in  winter.  The  stone-marten  is 
usually  caught  in  stony,  rocky  localities.  The  leopard  takes 
on  the  spots  of  light  and  shade  of  the  trees  among  which  it 
lives,  while  mink  caught  in  the  heavily  timbered  or  swampy 
country  is  naturally  darker  in  color  than  that  caught  in 
more  open  country.  An  otter,  caught  in  the  swamps  of  the 
Southern  States,  may  have  beautiful  coloring,  though  its  pelt 
naturally  would  not  be  so  fully  furred  as  one  caught  in  the 
colder  climate  of  the  north. 

Mink.  This  valuable  fur  is  found  in  most  parts  of  North 
America,  and,  owing  to  its  splendid  wearing  qualities  and 
rich-brown  color,  makes  a  desirable  fur  for  the  woman  who 
wishes  a  rich  effect  in  furs  which  will  give  long  service.  The 
mink  is  divided  into  four  different  grades,  namely,  Southern, 
Central,  Eastern,  and  Northern.  Southern  skins  are  quite 
flat,  not  of  good  color,  and  quite  stiff  and  coarse  in  hair. 
Central  skins  are  much  of  the  same  order  as  the  Southern, 
but  they  are  slightly  better  in  quality.  Eastern  skins  are 
of  a  very  fine  quality,  the  pelts  being  quite  small,  but  dark 
and  rich  in  texture.  While  these  skins  are  quite  expensive, 
owing  to  the  softness  and  silkiness  of  the  fur,  its  wearing 
qualities  are  not  quite  so  good  as  that  of  the  Northern,  The 
Northern  skins  are  the  ones  more  commonly  used  in  this 
country.  The  pelts  are  quite  large,  of  good  color,  very 
heavily  furred,  and  excellent  in  wearing  quality. 

All  minks,  regardless  of  species  or  locality,  are  graded  into 

four  qualities,  from  one,  the  best,  to  four.    The  grades  are 

determined  by  the  quality,  weight,  depth  of  hair,  and  color. 

The  darker  are  the  more  expensive.    The  younger  skins  are 

softer  and  more  valuable  than  the  older.    The  closeness  of 

texture,  softness  or  pliability,  and  color  give  some  idea  as  to 

the  valuation.    Many  furriers  gauge  the  thickness  of  the  fur 

by  blowing  into  the  pelt.     The  number  of  blistering  hairs 

75 


RETAIL    BUYING 

is  also  used  as  a  distinguishing  mark.  The  mink  has  short- 
haired  fur,  and  is  usually  seen  in  its  natural  state.  During 
recent  years,  however,  some  few  blended  minks  are  being 
seen  in  the  market. 

The  number  of  skins  used  in  the  making  must  also  be  con- 
sidered in  gauging  the  value.  Clever  cutters  are  capable  of 
cutting  one  skin,  dividing  the  strips,  and  matching  it  up  so 
as  to  make  it  look  like  two  skins.  Frequently,  four-skinned 
muffs  have  every  appearance  of  six-skinned. 

Japanese  Mink.  The  Japanese  mink  is  a  species  found  in 
Japan,  Manchuria,  and  Korea.  Being  a  pale  yellow  in  the 
natural  color,  it  is  usually  blended  to  a  deep,  rich  brown, 
with  a  darker  stripe  (to  imitate  the  American  mink).  While 
the  original  process  of  dyeing  turned  out  a  dark-finished 
skin,  the  new  one  turns  out  a  much  lighter  skin,  about  the 
color  of  the  Northern  mink.  The  finishing  and  dyeing,  of 
course,  have  as  much  to  do  with  the  quality  as  the  texture 
and  fullness  of  the  hair. 

Muskrat.  The  muskrat  is  a  short-haired  fur,  and  may  be 
seen  in  the  natural,  dyed,  and  blended.  It  is  taken  from  the 
water-rat  of  the  same  name,  found  in  the  marshy  places  of 
this  country.  The  fur  is  one  of  the  most  commonly  used, 
being  considered  most  satisfactory  because  of  wearing  quali- 
ties. It  is  used  for  small-piece  furs,  and  for  lining  or  trim- 
ming of  wearing  apparel  for  men  and  women.  Below  are 
found  the  principal  kinds  of  muskrat,  with  their  uses: 


Fall 


Used  for  the  making  of  lower-grade 
coats  and  sets. 


^T    , ,  J  Txr-  +         j  Used  for  making  better  grades  of 

IN  OrLllGrll  /      VV  m  XGr  \  1  1  Taj.  J  J. 

\  {  natural  muskrat  sets  and  garments. 

Snrins-       ^  Used  to  make  the  better  grades  of 
I  seal-dyed  muskrat. 
76 


DETERMINING   QUALITIES 

I  Fall  I  Used  for  making  better  grades  of 

and  -|  natural  Southern  muskrat  garments, 

Winter      (  cheaper  seal-dyed  muskrat. 
Spring       ^  ^^^^  ^°^  making  cheaper  linings  in 
i  men's  coats  and  other  garments. 

These  may  be  further  divided  into  the  grades,  poor,  medium, 
good,  and  extra.  The  grades  are  determined  by  the  general 
appearance  of  the  pelts  and  fur,  and  by  the  weight  of  the 
hair  or  the  amomit  of  fur  per  square  inch. 

Hudson  Seal.  Hudson  seal,  the  principal  substitute  for 
Alaska  seal,  is  a  treated  muskrat  dyed.  There  are  three 
distinct  operations  in  the  process  of  the  treatment,  namely, 
plucking,  shearing,  and  dyeing,  in  the  same  maimer  as  the 
real  seal.  The  value  of  the  Hudson  seal  depends  almost  en- 
tirely upon  the  skill  used  in  the  treating,  the  French  process 
being  superior  to  any  other.  In  some  cases  the  finished 
article  is  so  like  the  genuine  Alaska  seal  that  even  good  judges 
are  puzzled. 

The  Hudson  seal  may  be  classed  in  the  following  grades: 
fair,  medium,  good,  and  extra,  the  grade  depending  upon  the 
amount  of  fur  per  inch,  or  thickness,  the  general  appear- 
ance, the  color,  and  gloss,  as  well  as  the  softness  of  the  finished 
article.  The  under  color,  which  may  be  determined  by 
blowing  into  the  fur,  ranges  from  a  reddish  mahogany  to  a 
deep,  rich  bro\VTi,  while  the  surface  presents  a  rich,  glossy 
black.  The  luster  depends  on  the  quality  of  fur,  dyeing, 
and  workmanship. 

Some  unscrupulous  workers  make  a  practice  of  buying  the 
clippings  from  skins  used  by  the  first-class  houses  and  mak- 
ing them  up  into  scarfs  and  muffs.  These,  of  course,  are 
much  inferior  to  the  pieces  made  from  the  larger  skins. 
Some  of  the  poorer  qualities  of  Hudson  show  the  pale  color- 
ing at  the  root,  while  some  few  present  a  black  appearance. 

77 


RETAIL    BUYING 

Others  are  very  thin  in  hair  and  heavy  in  the  leather  proper- 
ties. 

Beaver.  The  beaver  is  a  short-haired  fur,  usually  seen 
in  its  natural  state.  As  it  comes  from  the  animal  the  fur  is 
one  of  the  most  unsightly  used  for  fur  purposes.  This  is  due 
entirely  to  the  long  and  coarse  guard-hair  it  wears.  After 
the  guard-hair  is  plucked  from  the  pelt,  a  very  fine  coating 
of  under-fur  is  left,  which  is  the  beaver  used  for  coats  and 
sets.  In  very  rare  instances  this  fur  is  used  unplucked.  The 
better  qualities,  which  are  found  in  the  Hudson  Bay  country, 
are  of  a  dark,  reddish-brown  color,  shading  lighter  toward 
the  sides,  with  a  dense,  short,  velvety  fur.  Unlike  the  land 
animals,  the  beaver  pelt  is  better  when  trapped  late  in  the 
winter.  The  amount  of  exercise  in  cold  water  has  a  tendency 
to  put  the  fur  in  the  best  possible  condition.  The  hair  is 
slightly  longer  than  the  otter.  Inferior  skins  are  taken  from 
Montana  and  North  Dakota,  the  fur  not  being  as  heavy  or 
as  thick  as  the  Hudson  Bay,  and  a  trifle  lighter  in  color. 
More  guard-hairs,  which  are  plucked,  are  found  with  this 
species  than  with  the  Hudson  Bay. 

The  beaver  is  graded  according  to  the  amount  of  fur,  the 
thickness,  and  the  quality.  The  greasy  appearance  is  no 
detriment  to  the  quality,  as  it  may  be  taken  out  by  using 
hot  sand  or  sawdust. 

Coney.  The  coney,  a  species  of  European  rabbit, 
is  one  of  the  short-haired  furs  which  may  be  seen  in 
both  the  dyed  and  the  natural  state.  It  is  the  cheapest 
of  fur  used  for  fur  purposes,  and  one  of  the  poorest  in 
wearing  quality;  although  fairly  strong  in  leather,  it  is 
not  very  durable  in  hair.  The  natural  colors  are  white, 
gray,  and  mottled. 

The  animal  is  a  native  of  France,  Belgium,  and  Australia, 
and  is  very  similar  to  the  American  rabbit.     The  French 

coney  has  longer  hair,  sometimes  being  used  to  imitate  the 

78 


DETERMINING   QUALITIES 

lynx.     It  presents  a  silkier  and  more  lustrous  appearance 
than  any  of  the  others. 

The  coney  is  divided  into  four  grades,  numbered  first, 
second,  third,  and  fourth,  in  order  of  quality.  It  may  be 
graded  by  the  quality  and  weight  of  the  hair,  the  amount  of 
fur  per  inch,  as  well  as  according  to  various  ways  of  making 
and  finishing. 

Near  Seal  and  Electric  Seal.  The  near  seal,  which  is  some- 
times sold  for  the  more  costly  Hudson,  and  the  electric  seal, 
are  made  from  the  French  and  Belgian  coneys.  They  are 
clipped  and  finished  in  the  same  way  as  the  Hudson  seal,  and 
graded  in  the  same  way.  The  electric,  however,  is  clipped 
longer  than  the  near  seal,  but  the  same  carefulness  is  not 
used  in  the  matching.    Consequently  it  is  the  less  expensive. 

Raccoon.  The  best  raccoon  skins  come  from  the  colder 
sections  of  this  country,  such  as  Wisconsin,  ]\Iichigan,  and 
Illinois.  This  fur  is  used  both  in  the  natural  and  in  the 
dyed,  to  imitate  fisher,  marten,  and  other  long-haired  furs. 
It  is  very  durable  and  is  used  for  practically  all  purposes. 

The  raccoon  furs  are  graded  according  to  the  section  of  the 
country  from  which  they  are  taken,  namely,  Northern,  Cen- 
tral, Southwestern,  and  Southern.  The  Northern  fur,  having 
a  dense  under-fur  of  deep  and  soft  texture  and  a  long,  shaded 
guard-hair,  is  the  best  quality,  and  is  used  in  the  making  of 
the  better  grade  garments,  scarfs,  and  muffs.  The  Central 
skin,  the  second  in  quality,  possesses  a  good  quality  of  hair. 
While  not  as  heavy  as  the  Northern,  it  has  a  very  dark  color. 
The  Southwestern  and  Southern  skins  are  of  a  rather  shaggy 
type,  the  fur  being  thin  and  quite  coarse,  and  the  leather 
heavier  and  more  firm.  Thickness  and  depth  of  the  fur, 
together  with  the  quality,  are  excellent  indications  of  the 
class  to  which  it  belongs.  The  best  quality  has  the  stronger 
contrast  of  light  and  dark  tones.    The  better  grades,  in  pale 

colors,  are  frequently  dyed  black  or  brown. 

79 


RETAIL    BUYING 

Skunk.  The  skunk,  usually  sold  as  black  marten,  is  used 
both  in  its  natural  state  and  dyed.  It  is  one  of  the  long- 
haired furs  and  is  very  durable.  Northern  skins  are,  of 
course,  better,  as  the  fur  is  much  thicker  and  of  a  softer 
texture.  The  skunk,  having  two  broad  stripes  of  white  down 
its  back,  in  the  raw  skin  is  graded  according  to  the  absence 
of  white.  The  less  white  the  better  the  pelt.  The  better 
grades  have  long,  fluffy,  rich,  lustrous  fur,  which  is  neither 
black  nor  brown,  presenting  a  smoky  appearance.  In  the 
finished  pieces  of  this  grade  the  two  white  parallel  lines  are 
cut  out,  leaving  the  skin  of  a  uniform  color. 

The  inferior  grades  are  usually  dyed  black  or  broTvu. 
Either  they  are  too  coarse  or  shaggy  in  appearance  (having 
been  caught  out  of  season)  or  possess  too  much  white  to 
permit  the  waste  of  cutting  out. 

There  are  various  grades  of  the  skunk  in  its  finished  state. 
The  better  grade  is  indicated  by  length  and  quality  of  hair, 
and  by  color.  The  poorer  qualities  are  thinner  in  fur  and 
lack  the  texture  or  softness  of  the  first  quality.  Practically 
all,  however,  have  the  guard-hairs  which  are  so  essential 
in  the  wearing  qualities.  A  still  poorer  quality  consist  of  the 
white  fur  which  was  cut  out  of  the  better  skins,  and  which 
has  been  dyed  and  made  up. 

Lynx.  Lynx  is  a  long-haired  fur  and  is  usually  found 
dyed  black,  although  it  is  sometimes  sold  in  natural  sets. 
It  is  one  of  the  most  perishable  as  well  as  one  of  the  most 
costly  of  generally  used  furs.  The  finished  lynx  may  be 
distinguished  from  the  fox  by  the  lack  of  dense  under-fur, 
and  by  its  natural  silkiness  and  gloss,  as  well  as  by  the  pres- 
ence of  the  long  belly  hairs. 

In  the  natural  state,  the  clear,  dark  skins,  soft  and  long- 
haired in  texture,  are  the  better  quality.  Few  of  this  quality 
are  dyed.    The  inferior  skins  are  dyed,  as  they  do  not  have 

the  appearance  necessary  for  natural.     The  better  quality 

80 


DETERMINING    QUALITIES 

of  the  hair  is  found  on  the  belly  of  the  animal,  this  being 
much  longer  and  silkier  than  any  other. 

There  are  five  to  six  grades  of  lynx  on  the  market.  The 
length,  silkiness,  and  fullness  of  fur,  together  with  the  thin- 
ness of  the  pelt,  denote  the  quality. 

Fox.  This  animal  is  a  native  of  all  the  countries  of  the 
globe,  but  the  American  fox  is  the  finest.  There  are  numerous 
species  of  the  fox,  such  as  red,  cross,  gray,  silver,  natural 
black,  natural  blue,  and  white.  The  red  is  the  more  com- 
monly used,  and  from  this  are  made,  by  dyeing,  the  black, 
taupe,  pointed,  "Isabella,"  and  others.  White  is  also  dyed 
into  blue  and  other  lighter  colors. 

The  fox  is  a  long-haired  fur  and  is  finished  in  both  the 
natural  and  dyed.  It  closely  resembles  the  more  expensive 
lynx,  and  is  frequently  mistaken.  Fox  skins  are  usually 
taped — i.e.,  small  strips  of  leather  sewed  between  alternately. 
These  strips  do  not  show,  but  increase  the  width  of  the  fur 
and  give  it  a  more  fluffy  appearance. 

There  are  so  many  different  species  of  fox,  and  so  many 
qualities  of  each,  that  it  will  be  impossible  to  define  each 
in  the  given  space.  Practically  all  grades  are  judged  in 
the  same  method  as  other  long-haired  furs.  The  finer, 
more  silky  texture,  thicker-furred  and  thinner  skins  are 
Northern  pelts  and  are  more  valuable.  The  better-marked 
and  richer  in  color  are  used  natural,  while  the  off-colored 
are  dyed.  The  size  of  the  skins  is  also  a  factor  in  the 
valuation. 

The  natural  black  fox  is  very  rare.  It  is  a  very  rich  fur, 
and  a  single  skin  is  worth  from  three  hundred  to  fifteen 
hundred  dollars.  The  dyed-black  fox  in  the  finished 
one-piece  scarf  is  worth  from  ten  to  fifty  dollars.  The 
silver  and  blue  fox  are  also  rare  and  correspondingly  ex- 
pensive. 

Wearing  Quality  of  Furs.    It  is  almost  impossible  to  state 
6  81 


RETAIL    BUYING 

just  how  long  a  piece  of  fur  will  wear,  as  no  two  skins  of  a 
given  kind  are  exactly  alike  in  texture;  again,  no  two  people 
will  wear  a  fur  in  the  same  way.  One  woman  may  wear  a 
Hudson-seal  coat  fifteen  years,  while  another  woman  might 
have  trouble  making  it  wear  more  than  two  years.  Generally 
speaking,  furs  in  their  natural  color  are  stronger  and  more 
durable  than  those  having  been  dyed.  Below  will  be  found 
a  list  showing,  approximately,  the  wearing  qualities  and 
durability  of  the  various  furs.  This  list  is  compiled  with 
otter  as  a  basis,  marked  100  per  cent,  in  durability.  Wolf  is 
one-half  as  durable  as  otter.  Hudson  seal  is  one-half  as 
durable  as  wolf. 

Otter 100% 

Mink 85% 

Beaver 80% 

Skunk  (natural) 75% 

Opossum 69% 

Fitch 67% 

Skunk  (dyed)   66% 

Raccoon 65% 

Persian  lamb 65% 

Muskrat  (natural) 65% 

Badger 60% 

Wallaby 55% 

Civet  cat 53% 

Alaska  seal 50% 

Kolinsky 50% 

Wolf 50% 

Astrakhan 45% 

Red  fox  (other  naturals) 40% 

Pony 32% 

Lynx  (coarser) 30% 

Ermine 25% 

Hudson  seal 25% 

Russian  sable 25% 

Lynx  (extra  fine) 20% 

Coney 20% 

Seal-dyed  Coney 19% 

82 


DETERMINING    QUALITIES 

Buying  Furs.  For  buying  purposes  the  fur  department 
should  be  completely  divorced  from  the  textile  ready-to- 
wear.  A  much  higher  percentage  of  value  of  labor  enters 
into  the  make-up  of  furs  than  into  cloth  garments,  which' 
automatically  increase  in  price  as  the  season  advances. 
Comparatively  cheap  labor  early  in  the  season  becomes  high 
priced  later  on.  The  best  results  can  only  be  obtained 
from  skilful  workers,  who  naturally  do  their  best  work  when 
not  too  badly  rushed,  and  who  have  abundance  of  day- 
light to  match  properly  the  skins  for  quality  and  color. 
Furs  should,  therefore,  always  be  bought  early  enough  to 
permit  manufacturing  before  the  rush  fall  season  com- 
mences. This,  of  course,  may  not  be  possible  in  every 
case,  as  some  of  the  extreme  novelties  may  not  be  pro- 
duced until  later  in  the  season.  Change  of  style  in 
ladies'  cloth  garments  may  have  a  bearing  also  on  what 
will  be  worn  m  furs,  but  the  more  staple  numbers, 
articles  that  every  fur  department  is  sure  to  require, 
should  be  ordered  in  ample  time  to  give  the  manufact- 
urer an  opportunity  of  putting  into  them  his  most  skil- 
ful labor. 

Almost  equally  important  is  the  necessity  of  buj^ing  furs 
of  reputable  houses,  who  will  make  good  any  article  that 
proves  defective,  and  who  have  the  reputation  for  turning 
out  reliable  merchandise.  As  far  as  possible,  it  is  wase  to 
have  a  salesman  wait  on  you  who  is  conversant  with  the 
locality  in  which  you  are  doiag  business.  A  salesman 
may  be  perfectly  honest  in  his  statement  that  the  article 
he  is  showing  has  been  a  good  seller,  when  that  might  not 
prove  true  lq  the  locality  where  the  merchant's  business 
is  located. 

The  buyer  must  always  bear  in  mind  that  his  customer 
in  purchasing  a  single  article  will  scrutinize  and  test  it  more 

carefully  in  the  single  piece  than  he  has  done.    General  ap- 

83 


RETAIL    BUYING 

pearance  appeals  to  him,  while  details  count  for  more  in  the 
sale  to  the  customer.  Good  designers',  pattern-cutters',  and 
skilful  fur-workers'  services  cannot  be  bought  cheaply,  and 
whenever  anything  of  unusual  value  is  offered  "there's  a 
reason." 

Groceries.  In  buying,  the  retail  grocer  either  is  called 
upon,  to  stock  advertised  package  brands  or  to  make  his  selec- 
^-Hbn  of  such  bulk  goods,  including  fruits  or  vegetables,  as 
the  market  affords.  The  old  days  are  past  when  he  selected 
most  merchandise  by  sample,  needing  a  fine  understanding 
as  to  quality.  In  its  place  a  simple  laying  in  of  those  brands 
demanded  by  the  consumer  has  replaced  the  old  system. 
This  change  has  in  a  great  measure  added  to  the  cost  of 
commodities.  However,  this  is  not  necessarily  so  to  an  un- 
economical degree,  for  the  average  retailer  has  developed 
from  the  inexperienced  ranks,  and,  therefore,  is  not  a  per- 
son that  would  be  able  to  make  a  selection  based  upon 
knowledge. 

Aside  from  such  fruits  and  vegetables  as  the  market 
offers,  his  buying  by  selection  as  to  quality  depends  only 
upon  a  few  Unes  of  bulk  goods,  such  as  cereals,  rice,  barley, 
tapioca,  etc.  And  even  these  are  continually  being  added  to 
the  brand  lines  until  in  the  near  future  all  goods  handled 
will  merely  be  designated  by  label. 

Some  of  the  lines  that  used  to  test  the  retailer's  intelligence 
most,  such  as  coffee,  tea,  butter,  and  eggs,  are  now  also 
added  to  the  brand  list,  and  to-day  he  merely  sells  such 
brands  of  can  or  package  coffee  and  tea  as  demanded. 
The  advertised  brick-butter  and  carton  eggs  replacing  bulk 
goods. 

Coffee  and  Tea.  The  merchant  who  wishes  to  select 
bulk  coffees  and  teas  upon  quality  must  positively  be  able 
to  select  them  for  their  cup  values,  their  general  appearance, 

and  later  their  acknowledged  satisfaction  given  the  con- 

84 


DETERMINING    QUALITIES 

sumer.  It  is  peremptory  in  the  handling  of  coffees  that 
stocks  shall  be  renewed  as  often  as  possible  to  avoid  the 
beans  from  becoming  tough,  for  the  sooner  the  coffee  is 
ground  and  consumed  after  the  bean  is  roasted  the  greater 
the  satisfaction  given.  Contrarily,  teas  may  be  stocked  for 
an  indefinite  time;  however,  both  coffee  and  tea  must 
be  stored  in  containers  that  are  free  from  contamination/ 
with  foreign  odors,  especially  soap,  cheese,  herring,  and 
kerosene. 

Since  the  qualities  of  goods  are  generally  determined  by 
the  palatable  satisfaction  given,  a  good  buyer  must  have 
a  fine  sense  of  taste  because  it  demands  a  keen  judgment 
to  tell  the  difference  between  various  grades.  The  tastes  of 
various  communities  differ  upon  these  commodities;  one 
class  will  demand  strong  coffees  and  teas,  while  others  may 
desire  just  the  opposite.  The  san^e  applies  to  butter, 
cheese,  and  similar  products. 

Fresh  Fruits.  These  are  tested  entirely  by  appearance 
and  lusciousness,  adding  thereto  a  third  quality,  that  jof 
the  keeping  quality.  Fresh  vegetables  are  generally  judged 
by  their  appearance  and  quality  for  cooking. 

Canned  Goods.  Almost  all  canned  goods  that  are  m 
general  demand  consist  of  advertised  brands,  yet  there  still 
remains  an  avenue  for  a  discriminating  buyer  to  select  quali- 
ties which  he  may  offer  his  trade  at  a  more  advantageous 
price,  side  by  side  with  well-advertised  brands.  Canned  goods 
in  general  offer  a  guarantee  of  sanitary  production  (as  well  as 
comparative  quality),  for  unless  packed  properly  they  will 
not  keep,  while  those  packed  in  the  modern  sanitary  way 
will  keep  indefinitely.  Canned  fruit  and  vegetables  which 
had  passed  through  a  fire  twenty  years  after  their  date  of 
packing  showed,  upon  cutting  (although  the  labels  had  been 
singed),  no  deterioration  whatever. 

Canned  Fruits.     These  are  mainly  judged  as  to  size, 

85 


RETAIL    BUYING 

mellowness,  flavor,  color  of  fruit,  and  consistency  of  syrup. 
Should  they  lack  these  qualities  they  are  of  a  lower  trade 
value. 

Canned  Vegetables.  The  various  kinds  of  canned  vege- 
tables are  judged  as  to  tenderness,  flavor,  color,  and  clearness 
of  liquor. 

Com.  This  should  be  of  uniform  kernel,  sweet,  and  free 
from  foreign  substances,  such  as  cob-particles  added  by 
close  cutting. 

Tomatoes.  Their  value  is  determined  by  size,  solidity, 
and  color,  which,  in  other  words,  would  determine  their 
ripeness. 

Peas.  Peas  are  graded  as  to  size,  tenderness,  flavor,  and 
clearness  of  liquid.  The  smaller  varieties  are  of  the  highest 
grade. 

Baked  Beans.  These  are  valued  for  flavor  and  tender- 
ness. 

String-beans.  String-beans  of  good  quality  should  be 
tender,  free  of  strings,  and  uniformly  small. 

Canned  Fish.  These,  such  as  salmon,  are  valued  for 
color,  flavor,  and  oily  consistency  of  the  liquor. 

Dried  Fruits.  Dried  fruits,  such  as  prunes,  peaches, 
apricots,  etc.,  must  show  size  and  flavor. 

Cereals.  Rice  is  selected  upon  size  of  kernel,  color,  and 
cooking  quality. 

The  following  table  is  inserted  to  show  that  flavor  and 
size  are  main  determining  values  of  food  products. 

86 


DETERMINING    QUALITIES 


Flavor 

Color 

Size 

Mellow- 
nesa 

Quality 

of 
Liquid 

Cooking 
Value 

Butter 

X 

X 

Cheese 

X 

X 

X 

Coffee 

X 

X 

X 

Dried  fruits 

X 

X 

X 

Fish,  Canned  Sahnon 

X 

X 

X 

X 

Fruit,  canned 

X 

X 

X 

X 

Fruit,  fresh 

X 

X 

X 

Rice 

X 

X 

Tea 

X 

X 

X 

Vegetables, 

Canned  Corn 

X 

X 

X 

(( 

Baked  Beans 

X 

X 

(( 

String-beans 

X 

X 

li 

Peas 

X 

X 

X 

(t 

Tomatoes 

X 

X 

X 

These  are  the  most  important  exceptions,  for,  as  stated 
above,  the  average  commodities  handled  by  the  grocer  of 
to-day  are  of  advertised  reputation  in  the  purchase  of  which 
the  retailer  has  no  selection.  This  is  evident  regarding 
baking-powder,  breakfast  foods,  flour,  condiments,  choco- 
late, cocoa  extracts,  sardines,  and  a  multitude  of  other  com- 
modities for  which  there  is  a  general  demand.    Even  in  the 

87 


RETAIL    BUYING 

various  lines  of  sundry  goods,  such  as  brooms,  brushes, 
blacking,  etc.,  some  established  brands  are  the  acknowledged 
sellers. 

The  advent  of  package  goods  marks  an  evolution  of  the 
grocery  business.  The  character  of  average  grocery-stores 
has  become  more  that  of  specialized  venders  of  foods,  be- 
cause niany  of  the  sundry  goods,  such  as  clothes-baskets, 
wash-tubs,  clothes-pins,  clothes-lines,  etc.,  are  gradually 
being  dropped  from  the  regular  grocer's  list  and  are  now 
being  sold  by  variety  or  department  stores. 

Tests  for  Other  Lines.  In  a  similar  way  tests  for  qualities 
are  made  in  other  lines  of  merchandise.  It  is  obviously  im- 
possible to  outline  the  standards  and  tests  for  every  kind  of 
goods,  and  accordingly  these  three,  textiles,  furs,  and  groceries, 
are  given  as  representative.  Similar  data  on  every  type  of 
merchandise  can  be  obtained,  though  not  always  readily  or 
in  published  form. 


VII 


BUYING    FOR    SPECIAL    SALES    AND    HOLIDAYS 

The  finding  and  buying  of  special  merchandise  for  sales 
is  one  of  the  most  difficult  problems  which  confront  a  buyer. 
A  full  knowledge  of  market  conditions  and  merchandise 
values  must  be  had  in  order  that  he  may  realize  when  he  is 
picking  up  suitable  merchandise  correctly  priced.  Any 
ordinary  clerk  could  pick  good  values,  a  bit  out  of  style, 
under  price,  if  the  manufacturer  or  distributer  were  anxious 
enough  to  rid  himself  of  it;  or  buy  good  merchandise  and 
pay  too  high  a  price  for  it.  But  the  good  buyer  must  find 
the  special  values  and  not  get  ''stickers." 

Clubbing  the  Salesman.  A  well-knowTi  writer,  author  of  a 
book  on  merchandizing,  gives  his  idea  of  buying  for  special 
sales:  "It  is  just  as  easy  to  get  some  concession  on  every 
order  turned  over  to  a  salesman  as  it  is  to  give  an  order  to 
every  salesman  who  shows  his  merchandise.  Look  the  line 
through,  pick  out  what  is  wanted  and  have  the  salesman 
make  out  the  order — so  that  there  can  be  no  chance  of  his 
attempting  to  change  the  quoted  price.  Then  put  a  straight 
proposition  to  him  by  explaining  that  some  special  mer- 
chandise must  be  had  for  some  special  sale  which  is  to  be 
offered  at  a  certain  time.  If  he  expects  to  have  your  signa- 
ture on  the  order,  he  must  also  take  your  order  for  an  addi- 
tional two  hundred  $1.35  wash-boilers  at  90  cents,  and  five 
hundred  pieces  of  the  32  -  cent  graniteware  at  22  cents. 
This  special  order  is  not  to  have  anything  to  do  with  the 

89 


RETAIL    BUYING 

regular  order,  which  is  to  be  given  at  original  quoted  prices ; 
it  will  also  have  nothing  to  do  with  future  reorders.  In 
other  words,  it  is  to  be  a  donation,  pure  and  simple,  to  help 
out  with  the  coming  season's  business. 

"Should  there  be  any  hesitancy  on  the  part  of  the  sales- 
man, simply  let  him  understand  that  whoever  gets  the  order 
will  have  to  comply  with  this  special  request.  Furthermore, 
the  special  merchandise  will  have  to  be  delivered  before 
regular  goods,  and  should  it  not  arrive  on  time  and  not  come 
up  to  sample  the  regular  order  is  to  be  canceled." 

The  writer  goes  on  to  explain  how  this  plan  may  be  used 
with  success  on  all  salesmen  visiting  the  house  and  what  sur- 
prising possibilities  are  in  the  plan.  He  fails,  however,  to 
take  into  consideration  that  every  salesman  must  call  on  these 
same  buyers  again,  and  that  after  his  first  encounter  both 
he  and  his  house  will  be  familiar  with  this  merchant's  way 
of  doing  business.  Not  only  that,  but  this  salesman  will  tell 
representatives  of  other  houses  what  kind  of  a  buyer  they 
will  have  to  deal  with  when  they  call  on  this  merchant. 
Prices  will  be  boosted  so  as  to  allow  for  the  necessary  cut, 
and  all  salesmen  will  delight  in  taking  advantage  of  such  a 
buyer.  The  plan  might  work  if  the  merchant  could  find  a 
new  house  to  do  business  with  each  time  he  needed  mer- 
chandise, and  if  salesmen  did  not  spread  such  information. 
This  merchant  would  eventually  pay  the  long  price  or  close 
up  shop. 

"Jobs."  Many  articles  have  appeared  in  the  various 
trade  journals  about  the  right  and  the  wrong  way  of  handling 
"jobs."  Some  of  the  writers  are  of  the  opinion  that  all  "jobs" 
are  profitable;  while  others  advocate  letting  them  alone  be- 
cause they  are  money-losers.  The  buying,  however,  will  de- 
termine whether  money  is  to  be  made  or  lost.  It  requires 
special  study  and  forethought. 

First  of  all,  a  buyer  must  remember  that  all  "jobs"  cannot 

90 


BUYING    FOR   SPECIAL   SALES 

be  sold  at  the  marked  price.  A  portion  is  sold  at  the  first 
marked  price,  and  when  the  selling  slows  up  the  lot  is  reduced. 
Usually  one-half  of  the  special  purchase  sells  at  the  first 
price,  one-quarter  at  the  second,  one-eighth  at  the  third, 
and  one-eighth  at  the  fourth  price.  In  considering  the 
"job,"  the  buyer  should  remember  that  100  per  cent,  profit 
must  be  made  on  the  entire  lot.  For  example,  a  *'job"  of 
graniteware  being  considered,  one-half  of  the  lot  will  retail 
at  35  cents,  one-quarter  at  25  cents,  one-eighth  at  20  cents, 
and  one-eighth  at  15  cents,  making  an  average  retail  price 
of  29  cents.  This  merchandise  should  not  cost  more  than 
141^  cents  per  piece. 

The  next  thing  to  consider  is  to  make  sure  that  the  mer- 
chandise can  be  sold  at  the  right  time.  There  is  a  psycholog- 
ical moment  for  the  offering  of  all  lines.  Hot-weather  lines 
cannot  be  sold  to  the  best  advantage  in  winter  weather, 
nor  can  winter  goods  be  sold  in  the  summer  months.  "Dead 
merchandise,"  goods  that  are  out  of  style,  cannot  be  sold 
advantageously,  regardless  of  how  they  are  priced.  For 
example,  four  years  ago  cotton  ratines  were  unusually  good. 
Many  small  buyers  bought  as  many  as  ten  pieces  of  a  color 
to  retail  as  high  as  $3  per  yard.  The  following  season  this 
merchandise  was  "dead."  Manufacturers  were  willing  to 
close  out  at  any  price.  One  merchant,  because  the  price 
was  low,  bought  twenty  pieces  priced  at  32  cents  per  yard. 
But  he  failed  to  close  the  lot  out  at  an  average  price  of 
20  cents. 

Another  necessary  condition  in  the  handling  of  "jobs"  is 
to  make  sure  that  a  sale  is  started  with  proper  vim  and  "go." 
The  salespeople  must  be  kept  enthused  to  the  highest  pos- 
sible pitch,  and  the  sale  must  not  be  allowed  to  drag.  Either 
put  the  merchandise  out  of  the  way  for  a  while  or  cut  the 
price  so  that  the  customer  will  be  anxious  to  buy  it. 

Finding  *'Jobs."      All  manufacturers  and  jobbers  have 

91 


RETAIL   BUYING 

broken  lines  of  merchandise  which  they  want  to  unload. 
The  shrewd  buyer  who  is  in  the  market  for  special-sale  mer- 
chandise can  pick  up  all  kinds  of  suitable  lines.  For  instance, 
a  year  ago  a  Wisconsin  merchant  wanted  to  j&nd  something 
to  help  build  trade  in  his  millinery  department.  During 
July  several  houses  were  found  with  broken  lines  of  Panamas. 
One  house  sold  ten  dozen,  all  it  had  in  stock,  varying  in 
price  from  $12  to  $36  per  dozen,  at  $10  a  dozen.  The 
merchant,  having  made  a  study  of  market  conditions,  knew 
that  their  season  (wholesale)  was  practically  over,  and  that 
attention  was  being  given  to  fall  merchandise.  These  hats 
wei;e  retailed  at  from  $1.25  to  $3.50,  and  twenty-five  dozen 
were  sold  in  about  three  weeks'  time.  The  customers  re- 
ceived extraordinary  values,  and  the  merchant  cashed  in  on 
his  initiative  and  knowledge. 

This  same  buyer  makes  a  practice  of  keeping  a  more  com- 
plete stock  of  handkerchiefs,  at  a  lower  price,  than  any  of 
his  competitors.  His  method  is  to  purchase  complete  lines, 
at  regular  prices,  and  take  all  the  close-outs  the  salesmen 
can  offer.  Many  lots  of  "irregulars,"  fifty  dozen  to  the  lot, 
have  been  purchased  at  a  time  at  a  price  low  enough  to 
justify  their  sale  at  a  uniform  price  of  123^^  cents.  In  the  list 
there  would  be  many  handkerchiefs  of  25-cent  and  35-cent 
value,  and  all  are  marked  according  to  actual  relative 
value,  so  as  to  make  the  profit  on  the  first  lot  sold.  As 
soon  as  the  sale  begins  to  drag,  all  remaining  goods  are 
marked  at  prices  that  will  insure  sale. 

Broken  lines  may  be  found  in  ribbons,  piece  goods,  staples, 

furniture,  hardware,  and  all  other  lines.     But,  as  a  rule, 

they  are  only  offered  in  quantities  out  of  reach  of  the  average 

small  merchant.    The  jobbers  and  manufacturers,  and  their 

salesmen,  strive  to  interest  the  larger  customer  with  any 

special  they  may  have  to  throw  out,  because  it  has  a  tendency 

to  insure  their  business  on  regular  lines.    Some  of  the  smaller 

92 


BUYING    FOR    SPECIAL    SALES 

merchants,  however,  have  found  co-operative  buying  a  suc- 
cessful way  to  handle  specials  and  jobs. 

Sample  Lines.  Salesmen's  sample  lines  may  be  had  at 
the  close  of  the  road  season,  which  is  about  the  middle  of 
the  retailer's  season,  at  from  33}/^  to  50  per  cent,  discount 
from  the  original  wholesale  price.  Some  of  these  lines  are 
clean  and  well  kept,  being  equally  as  good  as  fresh  mer- 
chandise. Other  lines,  being  slightly  soiled,  may  be  cleaned 
and  brightened  up. 

How  Competitor  Offers  Same  Material  and  Style  of  Gar- 
ment for  Less  Money.  Frequently,  especially  in  women's 
tailored  suits,  after  careful  buying,  it  is  found  that  a  com- 
petitor has  apparently  the  same  garment  to  offer  for  less 
money.  The  buyer  is  at  a  loss  to  know  just  how  it  was  done. 
Customers  explain  that  the  competitor's  material  and  style 
are  identically  the  same,  and  that  the  garment  is  priced 
$7  to  $10  less  than  the  garment  being  shown. 

In  all  markets  offering  men's,  women's,  or  children's  wear 
there  are  houses  making  a  specialty  of  turning  out  a  certain 
grade  of  work.  The  better  houses  turn  out  the  best  tailoring, 
and  use  the  highest  quality  of  findings  and  trimmings. 
Other  houses  may  be  equally  as  good  on  the  workmanship, 
but  the  trimmings,  findings,  and  linings  are  of  inferior  quality. 
Still  another  house  may  employ  the  cheapest  kind  of  labor, 
turning  out  inferior  work.  In  this  way  it  may  turn  out  a 
suit  resembling  the  one  turned  out  by  the  best  house, 
although  costing  much  less  money. 

In  every  city  or  town  there  are  merchants  who  make  a 

practice  of  buying  merchandise  from  cheaper  manufacturers, 

and  advertising  that  their  merchandise  is  the  same  as  that 

of    their   competitors   in   quality   for   less   money.     These 

merchants    may    appear    to    succeed    in    the    deception. 

Their  method   of   doing   business   is   hazardous,  however, 

for  any  merchant  who  is  anxious  to  build  a  successful  busi- 

93 


RETAIL    BUYING 

ness  and  who  expects  his  business  to  last  any  time  in  one 
location. 

Leaders  for  Clearance  Sales,  In  holding  clearance  sales 
the  most  important  consideration,  next  in  importance 
to  the  actual  procuring  of  the  merchandise,  is  to  deter- 
mine the  reason  why  the  sale  is  to  be  held.  In  order  to 
advertise  this  reason,  as  well  as  to  sweeten  up  a  stock, 
some  few  leaders  are  usually  purchased  to  mingle  with  the 
regular  stock. 

These  leaders  may  have  been  purchased  as  a  ''job"  from 
some  manufacturing  company  or  jobbing-house,  or  they 
may  have  been  purchased  in  a  regular  way.  Many  buyers 
make  a  practice  of  buying  regular  merchandise  to  use  as 
leaders.  The  commodity  is  purchased  in  larger  quantities, 
marked  as  close  as  possible,  cutting  the  profit  to  the  mini- 
mima.  Some  concerns  make  a  practice  of  selling  these  leaders 
at  actual  loss  to  advertise  the  sale.  Some  of  the  larger 
city  department  stores  select  for  these  leaders  some  line  of 
branded  goods,  because  it  gives  to  customers  the  assurance 
that  a  real  sale  is  in  progress.  The  result  is  that  an  in- 
creased volume  of  business  is  procured,  much  of  the  regular 
merchandise  is  moved,  and  many  new  friends  and  customers 
are  made  for  the  store. 

Monthly  Concentration  Sale.  A  merchant  in  southern 
Ohio  features  what  he  terms  a  "monthly  concentration 
sale."  The  first  day  of  each  month,  usually  three  months 
ahead  of  the  time  appointed,  the  merchant  and  his  sales- 
people meet,  plan  a  sale  to  be  carried  on  during  the  period 
in  question  and  decide  what  commodity  is  to  be  pushed. 
As  soon  as  the  commodity  has  been  selected  the  merchant 
begins  feeling  around  for  the  right  article  at  the  right  price. 
Samples  are  requested  from  numerous  manufacturers,  in 
order  that  a  comparison  for  quality  may  be  made  and 

quantity  prices  are  secured.    The  best  value  for  the  least 

94 


BUYING    FOR    SPECIAL    SALES 

money  is  secured,  and  quantity  prices,  as  well  as  all  discounts, 
are  taken  advantage  of. 

This  merchant's  experience  is  that  right  buying  is  one-half 
of  the  success  of  the  sale.  By  having  samples  submitted  he 
is  enabled  to  judge  what  is  best  suited  for  his  trade  and  to 
select  the  best  value.  He  knows  that  a  big  display  makes  for 
good  advertising  and  gives  the  public  confidence  in  the  suc- 
cess of  the  sale.  His  method  of  marking  the  commodity  at 
the  least  possible  sale  price  makes  it  hard  for  his  customers 
to  resist  buying  and  increases  his  volume  of  business  ma- 
terially. The  same  method  may  be  used  in  the  buying  of 
any  kind  of  merchandise  for  different  sales. 

Special  Requests.  A  Chicago  woman,  who  moved  to  Eau 
Claire,  Wisconsin,  recently  went  shoppmg  for  her  first  time  in 
the  city.  She  visited  all  the  stores  in  search  of  a  certain  brand 
of  embroidery  floss  she  had  been  accustomed  to  using.  Not 
one  of  the  stores  had  the  floss  or  offered  to  get  it  for  her, 
with  one  exception.  Here  her  name  was  taken  and  entered, 
together  with  the  kind,  color,  and  size  of  the  floss  desired,  in 
the  want-book.  Six  days  later,  when  the  article  was  re- 
ceived, the  customer  received  a  telephone-message  announc- 
ing the  fact.  The  customer  spent  six  cents  for  floss  and 
forty-five  dollars  in  the  ready-to-wear  department. 

The  want-book  method  offers  the  only  systematic  way 
to  keep  an  up-to-date,  complete  stock.  Each  time  a  call  is 
received  for  any  commodity  not  in  stock  the  salesperson 
should  enter  the  want,  together  with  all  necessary  informa- 
tion. Many  stores  make  a  practice  of  using  the  want-book 
system  and  holding  each  department  down  to  the  least  pos- 
sible investment.  Even  the  larger  city  department  stores 
have  found  it  impossible  to  do  without  the  want-book  in 
keeping  stocks  up  to  the  standard.  Stock-keepers,  whose 
efforts  are  given  mainly  to  reserve  stocks,  are  instructed  to 

enter  all  articles  in  want-books  when  the  stock  on  hand 

95 


RETAIL    BUYING 

reaches  a  certain  minimum.  This  allows  time  for  new  stock 
to  reach  the  store  before  the  stock  on  hand  is  cleared  out. 
Some  stores  go  further  by  malcing  use  of  the  want-book  in 
keeping  a  record  of  the  number  of  lost  sales  during  the  day. 
The  books  are  gathered  from  each  department  three  times 
a  week,  and  the  buyer  makes  note  of  the  merchandise 
wanted  and  the  quantity  desired. 

Holiday  Buying.  Christmas  buying  is  usually  done  many 
months  in  advance.  All  lines  are  more  complete  at  this  time 
and  merchandise  is  priced  more  advantageously.  Stock- 
sheets  for  merchandise  purchased  the  season  before  are 
usually  used  to  furnish  a  guide  for  the  amounts,  adding  enough 
only  to  take  care  of  the  estimated  natural  increase. 

The  actual  selection  of  holiday  merchandise  is  handled 
much  in  the  same  way  as  the  selection  of  regular  merchan- 
dise. The  buyer  keeps  in  mind  the  fact  that  the  Christmas 
spirit  moves  many  people  to  buy  merchandise  that  they 
would  not  think  of  purchasing  during  any  other  period  of  the 
year.  The  appearance  of  the  merchandise  is  usually  of  more 
importance  than  its  actual  valuation.  Care  should  be  exer- 
cised to  select  merchandise  which  will  appeal  to  the  average 
shopper  for  holiday  gifts,  and  particularly  merchandise  which 
will  appeal  to  children,  which  will  make  them  open  their  eyes 
with  delight  and  fill  them  with  a  desire  to  possess.  Every 
class  of  purchaser  and  all  ages  should  be  considered  and  kept 
in  mind  while  the  selecting  is  being  done. 

Delivery  should  be  made  not  later  than  November  10th, 
and  all  merchandise  should  be  marked  ready  for  stock  as 
soon  as  possible.  Plans  should  be  drawn  up  as  soon  as  mer- 
chandise has  been  selected.  The  Christmas  opening  should 
be  held  the  Saturday  after  Thanksgiving.  Every  eflFort 
should  be  made  from  that  time  on  to  have  the  store  present 
a  different  atmosphere  and  make  it  breathe  the  Christmas 
spirit. 

96 


VIII 


BUYING  TO   MEET  COMPETITION 

The  Value  of  Competition.  Most  buyers  have  learned 
the  truth  in  the  old  maxim,  "Healthy  competition  is  the 
life  of  business."  Because  of  it  business  methods  during  the 
past  fifty  years  have  been  revolutionized.  Where  competi- 
tion is  lacking  there  are  apt  to  be  lazy  business  methods. 
In  the  old  days  the  storekeeper  thought  that  price  was  the 
most  important  thing  in  his  business.  Competition,  how- 
ever, has  forced  the  merchant  of  to-day  to  realize  that  pro- 
gressive methods  in  buying  and  selling,  and  service  to  the 
customers,  are  of  more  importance  than  price,  in  many  lines, 
and  of  equal  importance  in  others.  So  important  is  the  ques- 
tion of  meeting  competition  that  many  of  the  larger  stores 
maintain  expensive  departments  for  the  sole  purpose  of 
keeping  themselves  posted  with  regard  to  what  competitors 
are  selling,  and  how  the  values  given  compare  with  their  own 
merchandise.  Such  precautions  may  be  taken  by  the  smaller 
stores  on  a  smaller  scale.  Newspapers  give  much  informa- 
tion. The  gossip  of  shoppers  throws  light  on  the  subject. 
Windows  may  be  watched  and  actual  merchandise  com- 
pared for  value.  The  successful  merchant  should  know  what 
his  competitor  is  doing  at  all  times.  The  idea  is  not  to  under- 
sell the  competitor,  but  to  furnish  equal  values  and  to  give 
better  service  for  the  same  money.  Few  buyers  can  resist 
the  temptation  "to  beat  the  other  fellow"  in  values.    But 

7  -  97 


RETAIL    BUYING 

such  a  policy  may  lead  to  a  cheapening  of  the  merchandise, 
and  it  is  extremely  difficult  to  get  hack  the  better  trade 
after  handling  cheaper  grades.  Again,  such  methods  may 
easily  bring  on  a  "price  war,"  with  the  consequent  loss  in 
profits. 

"  Friend  "  Competitor.  The  Retail  Grocers'  Association 
of  Fond  du  Lac,  Wisconsin,  which  holds  a  regular  bi-weekly 
business  meeting  in  one  or  another  of  the  member  stores, 
makes  it  a  point  to  discuss  various  business  questions  common 
to  all.  Modern  business  methods,  and  particularl}^  the 
problems  of  buying,  are  discussed,  for  general  improvement 
in  methods  helps  each  merchant  individually.  Each  one 
realizes  that  friendly  competition  is  the  only  kind  to  be 
tolerated,  and  that  it  must  be  built  upon  a  basis  of  straight- 
forward dealing  to  each  other. 

This  idea  of  being  mutually  helpful  may  be  contrasted 
with  the  situation  in  another  town,  not  far  distant,  where 
there  are  some  twelve  or  more  merchants  in  the  same  line 
of  business,  who  do  everything  possible  to  hurt  one  another. 
For  example,  recently  a  customer,  after  buying  an  overcoat 
of  one  merchant,  went  across  the  street  to  another  clothier 
to  get  a  cap,  as  the  first  merchant  had  none  in  stock  to  please 
him.  The  second  clothier,  on  greeting  the  customer  and 
finding  what  was  desired,  asked,  "What  did  you  pay  for 
that  coat  you  are  wearing?"  The  customer  replied  that  the 
coat  cost  fifteen  dollars.  Immediately  the  merchant  said, 
"I  could  have  given  you  the  same  coat  at  twelve  dollars." 
Very  likely  the  competitor  whose  sale  he  was  trying  to  spoil 
would  have  done  the  same  to  him.  Not  one  of  the  merchants 
in  town  has  a  good  word  for  a  competitor,  and  as  a  result 
the  whole  retail  situation  is  demoralized. 

These  two  illustrations  are  given  to  show  the  contrast 

between  co-operation  and  cutthroat  competition.     In  the 

one  case,  all  retailers  are  banded  together,  each  doing  a 

98 


BUYING    TO    MEET    COMPETITION 

profitable  business.  They  suffer  few  losses  through  selling 
merchandise  to  "deadbeats,"  and  they  all  profit  by  the 
pooling  of  experience.  In  the  other  case,  each  merchant 
is  trying  to  take  a  competitor's  business,  spending  so 
much  time  doing  it  that  he  has  no  time  to  build  up  his 
own  business. 

"Knocking"  reacts  upon  the  person  who  does  it.  It  is  a 
recognized  fact  that  a  customer  begins  to  lose  confidence  in 
a  retailer  who  makes  it  a  practice  to  run  dowTi  his  competi- 
tors. Curiosity  may  even  induce  them  to  see  what  the  com- 
petitor has  to  offer.  Competitors'  attacks  in  this  way  have 
become  a  form  of  free  advertising  for  the  one  attacked,  but 
where  all  are  following  the  same  policy  demoralization  of 
the  whole  trade  is  bound  to  result. 

Price-cutting  Competition.  The  clothing  trade  in  a  cen- 
tral Wisconsin  town  was  bothered  a  great  deal  not  long  since 
by  price-cutting.  One  of  the  merchants  of  the  town  made  a 
practice  of  running  special  sales  weekly,  and  during  these 
sales  a  considerable  amount  of  merchandise  was  sold  below 
actual  cost.  This  was  not  old  merchandise,  but  rather  new 
goods  bought  direct  from  the  manufacturer.  The  other 
clothiers  held  a  meeting  among  themselves,  trying  to  decide 
what  steps  to  take  to  stop  this  undesirable  competition. 
Finally  they  decided  that  whenever  a  sale  was  advertised 
each  merchant  would  have  each  one  of  his  salespeople,  each 
member  of  his  family,  all  his  close  friends,  and  any  one  he 
could  rely  upon  to  help  him,  buy  the  article  offered  for  him 
in  as  large  quantities  as  possible.  Each  merchant  agreed 
then  to  place  the  entire  purchase  in  his  window,  together 
with  a  card  announcing  what  the  articles  were  and  their 
sale  price,  selling  them  for  the  same  price  as  had  been  paid. 
It  was  soon  found  that  the  competing  merchants  were  able 
to  buy  about  one-half  of  the  sale  article,  and  they,  in  turn, 

were  selling  the  commodity,  at  no  actual  expense,  to  show 

99 


RETAIL    BUYING 

that  they  could  sell  equally  as  close  as  the  cut-price  merchant. 
The  result  was  that  the  price-cutting  merchant  lost  the  real 
sale,  wasted  his  advertising  appropriation,  obtained  no  pub- 
licity from  the  sale,  and  lost  the  difference  between  the  actual 
cost  and  the  sale  price.  He  soon  found  it  more  profitable 
to  mark  his  goods  at  a  fair  profit  and  to  consider  his  com- 
petitors before  attempting  to  ruin  the  trade  in  his  com- 
munity. 

Meeting  the  Competition  of  the  Large  City.  In  every 
community  there  are  people  who  feel  they  must  make  their 
purchases  in  a  larger  community  than  that  in  which  they 
reside.  Eau  Claire  has  women  who  shop  in  Minneapolis. 
Minneapolis  has  people  who  do  most  of  their  shopping  in 
Chicago.  A  considerable  number  of  Chicago  women  do  a 
large  part  of  their  buying  in  New  York  City.  New  York 
City  has  an  exclusive  class  which  shops  each  year  abroad. 
The  attraction  of  the  large  city  usually  spreads.  Then,  too, 
there  is  a  certain  fascination  for  women  to  shop  in  a  larger 
city,  where,  of  course,  larger  assortments  may  be  found. 
Some  women  shop  away  from  home  in  order  that  they  may 
have  exclusive  styles,  others  because  they  believe  the  city 
stores  quote  lower  prices.  In  the  first  instances,  the  home 
merchant  deserves  to  lose  the  business  if  he  does  not  buy  a 
few  exclusive  styles  to  suit  the  better  trade. 

If  a  merchant  in  a  small  city  carries  a  fair  stock  of  the 

better  merchandise  for  a  particular  trade,  and  then  loses  a 

considerable  amount  of  business  through  shopping  in  larger 

cities,  there  are  several  ways  in  which  he  may  overcome  the 

loss.    For  instance,  one  merchant  recently  found  that  the 

greater  portion  of  his  trade  was  being  supplied  with  wearing 

apparel  by  a  retailer  in  one  of  the  larger  near-by  cities.    Once 

during  each  season  several  representatives  of  the  city  house 

were  sent  with  six  large  trunks  to  the  smaller  city,  and  the 

selections  were  made  in  the  hotel  sample-rooms.    Instead  of 

100 


BUYING    TO   MEET    COMPETITION 

delivering  the  merchandise  at  the  time,  the  outside  merchant 
shipped  it  the  following  day.  There  was  absolutely  nothing 
illegal  in  the  plan,  but  the  shrewd  home  merchant  found  a 
way  to  stop  the  out-of-town  man  from  getting  the  business. 
Each  time  the  visiting  representatives  came  to  town  one 
of  his  clerks  found  time  to  visit  the  sample-room,  see  just 
what  people  were  doing  the  buying,  get  descriptions  and 
quantities,  if  possible,  of  the  garments  bought,  and  any 
other  valuable  information.  Then  he  went  to  work  to  dupli- 
cate the  garment  by  sending  in  descriptions  to  various  manu- 
facturers. In  such  a  case  several  were  bought  and  sold  to 
the  trade  for  the  least  possible  price.  The  idea,  of  course, 
was  to  sell  the  garments  to  people  such  as  servants,  and  es- 
pecially colored  people,  whom  the  exclusive  customer  did 
not  care  to  have  wearing  them.  Usually  the  garments 
bought  from  the  supposedly  exclusive  out-of-towTi  store 
would  be  discarded. 

It  is  easy  to  understand  why  the  average  rural  customer 
believes  that  the  city  store  sells  merchandise  for  less  money 
than  a  store  in  a  smaller  town  if  one  will  but  study  the  ad- 
vertising of  the  large  store.  The  city  store  can  afford  to 
engage  high-salaried  advertising  men  who  are  expert  in 
presenting  to  the  public  the  bargains  which  the  store  offers. 
The  small  store  is  not  so  well  equipped  to  exploit  its  bar- 
gains. Yet  every  store  has  bargains  to  offer,  and  every 
store  should  let  the  public  know  about  them  in  the  best 
possible  way.  The  publicity  gained  through  such  mer- 
chandizing is  the  most  valuable  to  be  had.  It  increases 
the  volume  of  business  and  creates  a  good  impression  for  the 
store. 

Chain-Store  Competition.  Notwithstanding  the  fact  that 
the  chain  store  has  many  advantages  over  the  smaller  re- 
tailer, there  are  many  compensating  advantages  to  the  in- 
dependent retailer.     The  chain  stores,  as  a  rule,  are  pro- 

101 


RETAIL    BUYING 

gressive  and  Avide- awake,  generally  taking  advantage  of 
every  opportunity,  while  the  majority  of  small-town  mer- 
chants are  unprogressive  and  incompetent.  They  fail  to 
study  their  business,  and  in  many  cases  seem  to  think  that 
all  they  have  to  do  in  order  to  become  successful  retailers 
is  to  put  the  goods  on  the  shelf. 

When  the  chain  store  opens  in  a  town  the  local  retailer 
is  forced  to  give  more  time  to  the  business,  and  particularly 
to  his  buying  methods.  He  must  begin  to  study  modem 
retail  methods  if  he  expects  to  cope  successfully  with  his 
rival.  If  chain  stores  deserve  no  other  credit,  they  are 
entitled  to  appreciation  for  the  impetus  they  have  given  to 
retailing  as  a  science. 

Among  the  natural  advantages  of  the  chain-store  method 
probably  the  hardest  to  compete  with  is  that  resulting  from 
their  tremendous  buying  power.  In  many  instances  the 
chain  either  owns  large  plants  which  make  merchandise  ex- 
clusively for  them  or  at  least  control  their  entire  output. 
In  other  cases  the  chain  store,  at  the  begirming  of  the  year, 
contracts  with  various  manufacturing  plants  for  a  certain 
amount  of  goods  to  be  used  during  the  year.  As  this  mer- 
chandise is  needed  it  is  shipped  direct  to  the  various  stores 
at  a  considerable  saving  to  both  the  manufacturer  and  the 
retailer. 

Before  placing  large  orders  for  a  chain  of  stores,  samples 
of  the  commodity  are  sent  out  to  the  various  stores,  together 
with  a  blank  on  which  a  report  of  salability  of  the  article 
is  made  and  sent  into  the  main  office.  Frequently  small 
trial  shipments  are  sent  out  and  the  merchandise  placed  on 
sale. 

The  chain's  order  will  depend  on  the  reports  from  the  sale. 
Should  a  large  order  be  placed,  however,  and  the  merchan- 
dise fail  to  move  in  any  given  locality,  it  is  switched  to  a 

different  section  of  the  country  to  be  disposed  of.    In  this 

102 


BUYING    TO    MEET    COMPETITION 

way  there  is  no  chance  of  overloading  with  a  lot  of  unsalable 
merchandise. 

One  of  the  strongest  advertisements  of  the  chain  store 
lies  m  the  fact  that  through  its  expert  methods  of  stock- 
keeping  it  is  very  seldom  out  of  any  commodity  which 
should  be  carried  in  stock,  and  3^  et  carries  only  a  small  stock. 
It  is  not  uncommon  to  go  into  any  independent  store  and 
to  be  told,  "We  are  just  out."  Grocers  have  even  been 
knoAMi  to  be  out  of  certain  grades  of  sugar,  coffee,  and  other 
staples.  The  chain  store  anticipates  the  demand  even  on 
specialties,  and  then  creates  a  desire  through  its  displajdng 
and  pricing  of  the  commodity. 

Advantage  of  Independent  Over  Chain  Stores.  Although 
the  average  expense  of  domg  business  for  the  chain  store  is 
less  than  for  the  independent,  there  are  many  corresponding 
advantages  for  the  independent  merchant,  and  one  of  the 
most  important  is  in  connection  with  the  buying.  The  local 
merchant  is  alwaj^s  m  contact  with  his  customers  and  he 
knows  their  wants.  The  chain-store  buj^er  is  frequently 
far  away  from  the  locality  where  the  merchandise  is  to 
be  sold.  The  independent  merchant  may  buy  his  goods 
in  small  quantities  and  take  advantage  of  any  special 
purchases  at  a  moment's  notice.  He  may  test  out  any 
commodity,  and  even  go  so  far  as  to  make  use  of  it  in 
his  own  home  to  make  sure  of  its  value  and  service-giving 
qualities.  This  advantage,  coupled  with  the  realization 
that  he  can  himself  use  efficient  chain-store  methods,  puts 
a  merchant  in  the  position  where  he  can  welcome  chain- 
store  competition. 

Mail-order  Competition.     The  past  few  years  have  seen 

a   rapid    development   of   the    mail-order   business.      Two 

hundred   and   fifty  thousand  mail-order  catalogues,   from 

various  New  York  and  Chicago  companies,  were  distributed 

in  Mobile,  Alabama,  alone  in  1916.     The  number  distrib- 

JO.3 


RETAIL   BUYING 

uted  in  other  centers  was  probably  in  similar  proportion. 
Thousands  of  sales  must  necessarily  be  effected  in  order  to 
take  care  of  the  enormous  expense  of  printing  and  distribut- 
ing these  catalogues.  Sears,  Roebuck  &  Co.  alone  did  a 
business  of  $146,000,000  in  1916. 

All  this,  and  more,  is  known  to  merchants  everywhere. 
Some  frankly  acknowledge  mail-order  competition.  Others 
complain  of  the  "illegitimate  mail-order  business"  that  is 
driving  them  to  the  wall.  Notwithstanding  these  facts  they 
make  little  effort  to  meet  this  competition,  seemingly  content 
to  sit  by,  doing  business  just  as  it  has  been  done  for  the  last 
twenty  years,  and  witnessing  the  increase  in  mail-order  sales 
in  the  locality  and  the  decrease  in  their  own  volume  of 
business. 

As  a  matter  of  fact,  there  are  many  ways  of  competmg 
successfully.  Merchants  do  not  realize  that  they  themselves 
are  responsible  for  the  growth  of  the  mail-order  houses.  In 
order  to  meet  mail-order  competition  it  is  necessary  to  under- 
stand clearly  why  the  public  buy  from  the  mail-order  house 
instead  of  from  his  local  store.  It  is  simply  because  they 
receive  a  better  price  or  better  service.  If  the  mail-order 
house  can  give  better  prices  than  the  local  store,  it  is  because 
it  can  buy  more  closely,  do  business  at  a  smaller  expense, 
or  be  satisfied  with  a  smaller  profit. 

Buying  Methods.  In  buying  for  a  mail-order  business 
the  same  principles  are  followed  by  all.  With  many  of  the 
larger  commodities,  such  as  furniture,  stoves,  trunks,  and 
the  like,  the  buyer  goes  into  the  market,  finds  a  manufacturer 
who  is  willing  to  contract  to  furnish  the  desired  quantity, 
according  to  specifications,  at  a  certain  price.  Frequently 
cash  is  paid  before  a  single  article  has  been  delivered,  and  the 
house  may  draw  on  the  manufacturer  for  the  commodity 
as  it  is  needed  and  in  the  quantities  desired.    Some  make  it  a 

practice  to  list  commodities  in  the  catalogue,  with  price  and 

104 


BUYING   TO   MEET   COMPETITION 

description,  without  stocking  any  of  the  goods.  When  orders 
are  received  from  the  consumer  the  mail-order  house  for- 
wards directions  to  the  manufacturer  to  ship  direct  to  the 
purchaser.  In  this  way  they  save  the  expense  of  handhng 
and  storing  the  merchandise.  Much  of  the  merchandise  for 
sale  by  mail  is  bought  from  manufacturing  companies  who 
have  surplus  stocks  on  hand  which  must  be  unloaded.  In 
a  certain  instance  a  mail-order  buyer  is  said  to  have  ap- 
proached a  manufacturer  just  before  inventory  with  an 
offer  of  a  small  figure  for  several  thousand  dozen  pens,  the 
entire  number  on  hand.  The  manufacturer  refused  the 
offer,  but  agreed  to  sell  at  a  flat  price  a  trifle  higher  than 
offered.  After  a  little  dickering  the  mail-order  buyer  split 
the  difference  between  his  offer  and  the  manufacturer's 
price.  This  was  a  much  lower  price  than  that  at  which  a 
regular  dealer  could  buy  the  merchandise.  The  manufacturer 
saved  a  considerable  expense  in  handling  a  number  of  small 
orders  sent  in  by  dealers,  and  cleaned  out  his  entire  surplus 
stock  at  one  stroke.  The  pens  were  not  labeled  with  the 
manufacturer's  name,  although  they  were  the  same  quality 
and  exactly  the  same  styles  as  were  sold  through  regular 
dealers  and  at  regular  prices. 

Large  orders  are  valued  assets  to  any  manufacturer. 
Therefore  many  manufacturers  are  willing  to  sacrifice  some 
profit  to  secure  what  they  term  "additional  business."  When 
a  buyer  comes  in  who  can  place  such  an  order  there  is  every 
chance  that  he  will  get  the  merchandise  he  is  looking  for 
at  the  right  price.  The  big  buyer  with  plenty  of  cash  at  his 
disposal  may  wait  his  chance  for  bargains,  but  eventually 
he  picks  them  up  from  sources  not  available  to  the  smaller 
dealer.  There  are  some  manufacturers,  however,  who  will 
not  sell  their  products  in  this  way  or  give  quantity  prices. 
If  a  mail-order  house  is  forced  to  handle  these  lines  from 

houses  which  refuse  them  inside  or  quantity  prices,  they 

105 


RETAIL    BUYING 

frequently  run  them  as  loss  leaders,  selling  thom  without 
making  a  profit  and  actually  losing  money. 

In  the  case  of  one  manufacturing  company,  it  is  said  that, 
after  selling  a  considerable  quantity  to  a  catalogue  house, 
they  found  they  could  not  continue  to  market  their  product 
through  regular  retailers,  because  retailers  could  not  afford 
to  meet  the  prices  established  by  the  catalogue  house.  When 
the  sales-manager  realized  he  had  lost  his  market  through 
regular  retailers,  he  came  back  to  the  mail-order  house  and 
made  arrangements  with  them  to  take  over  his  entire  product. 
Such  buying  methods  give  the  mail-order  house  the  advan- 
tage over  the  small  local  retailer.  Large  department  stores 
and  big  users  of  merchandise  have  the  same  privilege  and 
use  it. 

Retailer's  Advantage  Over  the  Mail-order  House.  In  the 
first  place,  the  retailer  is  on  the  ground,  coming  fn  direct 
contact  with  his  trade  from  day  to  day,  and  being  in  a  position 
to  take  advantage  of  sudden  style  changes  and  sudden  op- 
portmiities  to  get  desired  merchandise  on  short  notice,  where- 
as the  mail-order  house  must  plan  its  buying  from  six  months 
to  a  year  in  advance.  This  is  one  of  the  most  effective  ad- 
vantages of  the  independent  merchant. 

Next,  his  merchandise  is  where  it  may  be  handled  by  the 
customer,  and,  through  the  aid  of  efficient  salespeople,  a 
desire  for  the  commodities  may  be  created.  This  is  an 
important  consideration  m  comiection  with  buying.  The 
mail-order  house  must  rely  on  interesting  the  prospective 
customer  through  pictures  and  descriptive  matter  in  their 
catalogues.  Should  the  sale  in  a  local  store  terminate  in 
dissatisfaction,  an  easy  and  quick  adjustment  may  be  made, 
as  the  purchaser  may  come  in  personal  contact  with  the 
adjuster,  while  with  the  mail-order  house  it  necessitates  the 
trouble  of  repacking  and  reshipping,  letter-writing,  and  a 
considerable  delay  must  result. 

100 


BUYING    TO    MEET    COMPETITION 

Again,  it  is  possible  to  prove  to  the  local  trade  that  they 
may  buy  from  the  home  store,  and  be  as  well  suited  and 
satisfied  as  if  they  had  bought  from  the  mail-order  house. 
The  retailer  may  order  a  shipment  of  merchandise,  for  com- 
parative purposes,  from  the  catalogue  houses,  and  display 
it  with  cards  showing  prices,  quality,  weight,  time  required 
to  receive  package,  etc.,  at  the  same  time  making  a  display 
of  merchandise  out  of  the  store  to  correspond  with  the  mail- 
order merchandise.  Comparative  prices  and  qualities  can 
readily  be  shown  in  a  way  to  create  a  favorable  impression 
for  the  local  retailer. 

Two  young  men  who  jointly  owned  a  store  in  a  thickly 
populated  mail-order  section  of  Wisconsin  decided  to  fight 
the  mail-order  people  with  their  own  methods.  Catalogues 
were  sent  for,  and  merchandise  was  ordered,  received,  and 
studied  in  order  that  they  might  determine  just  what  quali- 
ties to  look  for  in  the  merchandise  when  placing  orders. 
Large  quantities  of  the  same  character  of  merchandise  were 
bought,  and  when  received  it  was  displayed  much  after  the 
fashion  of  the  five-and-ten-cent  chain-store  display.  The 
catalogues  received  from  the  various  mail-order  houses 
were  displayed  all  through  the  store,  so  that  the  customers 
might  have  no  trouble  in  making  comparisons  should  they 
so  desire.  The  customers  soon  found  out  that  they  could 
trade  more  profitably  in  their  home  store,  and  the  merchants, 
in  turn,  gave  better  service. 

Another  merchant  tells  of  advising  a  customer,  after  the 

latter  mentioned  that  he  had  always  been  well  suited  with 

merchandise  ordered  through  the  catalogue,  to  order  the 

commodity  from  a  catalogue  house  and  have  it  brought 

direct  to  the  store,  so  that  it  might  be  compared  with  one 

of  the  stock  articles.     The  order  was  written  in  the  store 

and  mailed.     After  a  wait  of  twenty  days  the  article  was 

received,  heavily  crated.    It  was  brought  to  the  store  and 

107 


RETAIL   BUYING 

opened.  It  had  been  jammed  and  jostled  around  so  that  it 
did  not  present  the  best  appearance,  while  the  stock  com- 
modity had  been  thoroughly  cleaned  and  brightened  up  for 
the  test.  The  plan  worked  so  well  that  the  customer  bought 
the  stock  article  from  the  store,  returning  the  mail-order 
article,  and  developed  into  a  steady  customer. 


IX 


DETERMINING   PRICES  AND   PROFITS 

Profit.  "What  is  the  use  of  my  figuring  profit,  mark-up, 
etc.?  Prices  in  my  line,  both  wholesale  and  retail,  are  de- 
termined, in  most  cases,  by  competition;  and,  in  cases  of 
branded  and  advertised  lines,  by  the  manufacturers."  The 
owner  of  a  small  Wisconsin  grocery-store  was  explaining  to 
a  young  traveUng-man  why  it  was  impossible  for  him  to 
make  more  than  a  living  out  of  his  business.  The  two  men 
had  entirely  different  ideas  about  business.  The  one,  after 
forty-five  years  spent  in  the  harness,  had  given  up  and  de- 
cided to  let  fate  steer  his  ship;  the  other,  three  years  of 
business-training  to  his  credit,  knew  that  success  in  the  re- 
tail business  was  only  won  through  hard,  persistent,  and 
systematic  work. 

The     merchant    of    yesterday   was    well    satisfied    with 

a  living  and  a  small  profit  at  the  end  of  the  year  from  his 

business.     To-day,  however,  the  successful  merchant  not 

only  receives  a  salary  for  his  time  given  to  the  business  and 

a  profit  at  the  end  of  the  year,  but  he  receives  interest  on  the 

money  invested  in  the  business.     The  rising  cost  of  doing 

business  has  forced  the  modem  merchant  to  a  conscientious 

study  of  profit  and  turnover.      Profit  depends  largely  upon 

the  buyer's  merchandizing  knowledge;  or,  putting  it  another 

way,  profit  is  what  the  consumer  pays  for  the  merchant's 

or  the  buyer's  merchandizing  knowledge, 

109 


RETAIL    BUYING 

There  is  no  standard  by  which  a  buyer  may  work  in  order 
to  gauge  his  profits,  because  buyers  differ  in  knowledge  and 
ability.  For  example,  buyer  Jones  has  the  ability  to  find 
out  what  new  commodities  arc  on  the  market,  and  his  knowl- 
edge of  the  market  gives  him  the  opportunity  of  i)utting 
these  articles  in  stock  while  they  are  new,  thus  enabling 
him  to  keep  a  clean,  new,  and  up-to-date  stock,  and  to  sell 
the  merchandise  at  the  marked  prices. 

"When  grandfather  kept  store  he  didn't  know  that  he 
had  such  a  thing  in  his  possession  as  a  cost  of  doing 
business;  consequently  it  never  kept  him  a*vake  at 
night.  But  grandfather  was  able  to  ask  and  to  get  a 
nice  fat  profit  on  every  sale.  He  had  little  or  no  com- 
petition, and  it  cost  him  about  one -half  as  much  to 
run  his  store  as  it  would  were  he  in  business  to-day.  He 
paid  his  bills  when  they  came  due,  pocketed  what  was 
left,  and  thought  of  the  cost  of  doing  business  as  a  freak 
idea  of  a  lot  of  college  professors. 

"  But  to-day  the  merchant  who  does  business  without  ac- 
curate figures  that  show  him  all  of  his  costs,  and  the  relation 
they  bear  to  the  sales,  is  working  under  a  serious  handicap. 
He  can  never  be  sure  that  he  is  making  the  profit  he  is  plan- 
ning on.  He  has  no  accurate  idea  of  his  business  condition. 
He  is  guessing  rather  than  knowing,  and  at  least  half  of  the 
time  he  is  likely  to  guess  wrong."  ^ 

Figuring  the  cost  of  doing  business  is  not  difficult.  In 
fact,  it  is  simpler  than  it  sounds.  It  is  a  question  of  keeping 
accurate  records  of  every  expense — rent,  light,  heat,  salaries, 
supplies,  delivery,  and  so  on.  Then  the  total  expenses  are 
figured  for  a  certain  time  and  compared  with  the  total  sales 
for  the  same  time. 

Here  are  a  few  simple  suggestions  for  the  proper  figuring 

1  Quoted  from  Nesco  News,  by  permission. 
110 


DETERMINING    PRICES    AND   PROFITS 

of  expenses  that  are  recommended  by  the  National  Associa- 
tion of  Credit  Men: 

1.  Charge  interest  on  the  net  amount  of  your  total  investment 

at  the  beginning  of  the  business  year,  exclusive  of  real 
estate. 

2.  Charge  rental  on  all  real  estate  or  buildings  owned  by  you  and 

used  in  your  business  at  a  rate  equal  to  that  which  you 
would  receive  if  renting  or  leasing  it  to  others. 

3.  Charge  in  addition  to  what  you  pay  for  hired  help  an  amount 

equal  to  what  your  services  would  be  worth  to  others;  also 
treat  in  like  manner  the  services  of  any  member  of  your 
family  employed  in  the  business  and  not  aheady  on  the 
regular  payroll. 

4.  Charge  depreciation  on  all  goods  carried  over  on  which  you 

may  have  to  make  a  lower  price  because  of  changes  in  style 
damage,  or  any  other  cause. 

5.  Charge  depreciation  on  building,  tools,  fixtures,  or  anything 

else  suffering  from  age,  wear  and  tear. 

6.  Charge  amounts  donated  or  subscriptions  paid. 

7.  Charge  all  expenses,  such  as  taxes,  insurance,  water,  light, 

fuel,  etc. 

8.  Charge  all  incidental  expenses,  such  as  drayage,  postage,  office 

supplies,  hvery,  or  expenses  of  horses  and  wagons,  telegrams 
and  telephone,  advertising,  canvassing,  etc. 

9.  Charge  losses  of  every  character,  including  goods  stolen  or 

sent  out  and  not  charged,  allowances  made  customers,  bad 
debts,  etc. 

10.  Charge  collection  expense. 

11.  Charge  any  other  expense  not  enumerated  above. 

12.  When  you  have  ascertained  what  the  sum  of  all  the  foregoing 

items  amount  to,  prove  it  by  your  books,  and  you  will  have 
your  total  expense  for  the  year;  then  divide  this  figure  by 
the  total  of  your  sales,  and  it  will  show  j^ou  the  per  cent, 
which  it  has  cost  you  to  do  business. 

13.  Take  this  per  cent,  and  deduct  it  from  the  price  of  any  article 

you  have  sold,  then  subtract  from  the  remainder  what  it 
ill 


RETAIL   BUYING 

cost  you  (invoice  price  and  freight),  and  the  result  will  show 
your  net  profit  or  the  loss  on  the  article. 

14.  Go  over  the  selling  prices  of  the  various  articles  you  handle; 
see  where  you  stand  as  to  profits,  then  get  busy  in  putting 
your  selling  figures  on  a  profitable  basis — and  talk  it  over 
with  your  competitor  as  well. 

Know  Your  Costs.  These  suggestions  show  that  there 
is  but  one  safe  plan  in  dealing  with  selling  costs — know  your 
own  costs,  know  them  inside  and  out,  upside  down  and 
backward.  Make  it  a  point  to  know  just  as  much  about 
the  costs  of  doing  business  as  you  know  about  the  cost  of 
the  merchandise  you  sell.  One  very  satisfying  thing  about 
the  study  of  costs  is  the  way  in  which  it  uncovers  unneces- 
sary expenses.  Often  a  merchant  is  able  to  save  a  fair  sum 
of  money  by  cutting  out  expenses  that  he  never  noticed  until 
he  got  his  cost  figures  down  in  black  and  white.  But  be  sure 
to  draw  a  sharp  line  between  selling  expense  and  waste. 
Cut  out  the  waste,  but  do  not  economize  by  attempting  to 
reduce  expense  necessary  to  the  making  of  sales.  The  cash 
that  goes  to  keep  a  neat,  attractive  store,  an  up-to-date  stock, 
courteous  and  efficient  clerks,  to  advertise  your  store  and 
to  keep  accurate  records  of  the  business,  is  money  well  spent. 

In  order  to  make  a  systematic  study  of  profit  it  is  obviously 
necessary  to  make  a  study  of  the  expense,  not  only  as  we 
have  previously  done,  but  to  compare  percentages  of  other 
stores.  The  expense  will  vary,  of  course,  because  of  local 
conditions,  the  size  of  the  city,  the  amount  of  business  done, 
the  character  of  the  trade,  or  the  class  of  merchandise  sold. 
Accountants  have  made  a  study  of  this  specific  subject, 
and  many  articles  and  statistics  have  been  published.  Promi- 
nent among  them  are  the  bulletins  issued  by  the  Bureau 
of  Business  Research,  Harvard  University.  One  of  their 
bulletins  entitled,  Expenses  in  Operating  Retail  Grocery- 
stores,  gives  the  following  table  of  percentages: 

112 


DETERMINING  PRICES  AND  PROFITS 

SUMMARY    TABLE    OF    PERCENTAGES,    AND    OTHER 
FIGURES  FOR  RETAIL  GROCERY-STORES  ^ 


Standards 
attained 

(For  Percentages,  Net  Sales  -  100%)         ^^"^             ^'^h  Common    ^^05^^^°"^ 

efficient 
Stores 

%                 %  %                 % 

Gross  profit  on  merchandise. . .     14.6        27 . 9  21.0         .... 

Salaries  and  wages  of  buying 

force 0.1          2.4  0.5        

Other  buj-ing  expense 0.0          0.5  0.02       .... 

Total  buying  expense 0.1          2.4  0.5         .... 

Salaries  and  wages  of  sales  force      3.5        10.6  6.5          5.0 

Advertising 0.01         1.8  0.1         

Wrappings  and   miscellaneous 

seUing  expense 0.03        1.4  0.4          0.3 

Total  seUing  ex-pense 4.5        10.8  7.0          5.5 

Wages  of  dehverj'^  force 0.6          3.5  1.5          1.0 

Other  dehvery  expense 0.3          3.4  1.5          1.0 

Total  deUvery  expense 1.1          5.9  3.0          2.5 

Management  and  office  salaries      0.3          3.8  1.5         .... 

Ofiice  supplies  and  expense.  ..       0.01        0.4  0.1         .... 

Total  management  expense ...       0.4          4.0  1.7         .... 

Rent 0.3          4.1  1.3          0.8 

Heat,  light,  and  power 0.1          0.8  0.2          0.15 

Insurance  on  stock  and  store 

equipment 0.03        0.5  0.1         

Taxes 0.01        0.5  0.1 

Repairs  and  renewals  of  store 

equipment 0.01         1.4  0.1         

Depreciation  of  store  equip- 
ment        0.03        0.9  0.2 

Total  fixed  charges  and  upkeep 

expense 0.8          5.6  2.0          1.5 

Telephone 0.04        0.6  0.2 

*  This  Btimmary  includes  stores  which  sell  groceries,  and  also  stores  which  sell  both 
groo«rie8  and  meats  and  provisions.     Quoted  by  permission. 

8  113 


RETAIL    BUYING 

Standards 
attained 

(For  Percentagee,  Net  Salea  -  100%)  ^°^  "'sh         Common     ^^f^j^rT^ 

efficiont 
Storea 

Ice  and  cold  storage:                        %  %  %            % 

Groceries  only 0.01  0.6  0.1          0.1 

Groceries  and  meats  and  pro- 
visions        0.03  0.7  0.3          0.2 

Other  miscellaneous  expense.  .       0.01  1.2  0.1         .... 

Total  miscellaneous  expense ..       0.1  1.4  0.5          0.3 

Losses  from  bad  debts 0.01  2.2  0.5          0.2 

Total  of  expense  statement ...     10.4  25. 2  16.5        13.0 
Net  profit  from  merchandise 

operations Loss 

3.3  11.0  2.5-5.5       .... 

Interest 0.2  1.7  0.8 

Number  of  Stock-turns  a  3^ear: 

Groceries  only 3.5  23.8  7.0        12.0 

Groceries  and  meats  and  pro- 

\^sions 7.0  26.4  9.0        14.0 

Average  annual  sales  per  sales- 

person $5,000  S20,000   $10,000        

Gross  and  Net  Profit.  In  the  management  of  a  retail 
store  it  is  essential  that  the  buyer  or  the  manager  make  note 
that  there  are  two  distinct  kinds  of  profit — namely,  gross 
profit  and  net  profit.  Gross  profit  represents  the  difference 
between  the  cost  price  and  the  selling  price;  while  net  profit 
represents  what  is  left  after  all  expenses  of  selling  have  been 
deducted.  For  instance,  we  sell  a  stove  which  cost  $20  for 
$30.  The  gross  profit  made  on  this  transaction  is  the  differ- 
ence between  $20  and  $30,  or  $10.  But  the  cost  of  doing 
business  is  20  per  cent.  Therefore,  our  net  profit  amounts 
to  the  difference  between  the  $20  and  $30  minus  20  per 
cent,  of  the  sale  price,  the  cost  of  doing  business,  which 
gives  us  10  minus  6,  20  per  cent,  of  $30,  or  $4  net  profit. 

Hart,  Schaffner  &  Marks  investigated  and  collected  figures, 

showing  cost  and  profit  percentage,  from  retailers  who  handled 

114 


DETERMINING    PRICES   AND    PROFITS 

their  goods,  for  the  purpose  of  assisting  the  dealer.     The  fig- 
ures have  been  analyzed  and  the  averages  shown  as  follows: 

AVERAGE  PROFITS  FROM  CLOTHING-STORES 

Average  gross  profit 29 . 1% 

Average  net  profit 10. 0% 

Average  of  discounts 3 . 3% 

Average  gross  profit  when  net  profit  is  over  10% 30. 9% 

Average  gross  profit  when  net  profit  is  under  10%  27.8% 

Average  net  profit  plus  discounts 13. 1% 

Average  cost  of  doing  business 19 . 0% 

Average  rate  of  turnover  (one  inventory) 2 . 4% 

Cost  or  Selling  Price.  In  order  that  figures  of  other  stores 
or  figures  of  previous  years  may  be  compared  with  expenses, 
profits,  etc.,  it  is  essential  that  the  totals  be  reduced  to  per- 
centages, and  in  order  to  arrive  at  any  percentage  it  is  neces- 
sary that  some  common  base  be  decided  upon.  No  merchant 
can  derive  any  benefit  through  his  work  of  comparing  per- 
centages when  he  uses  the  cost  one  time  as  a  basis  and  the 
sale  price  the  next  time.  His  comparisons  will  amount  to 
naught  and  his  labors  will  be  worse  than  useless;  that  is,  of 
course,  if  the  results  of  one  be  compared  to  those  of  the  other. 

There  are  a  number  of  factors  which  determine  whether 
the  cost  price  or  the  sale  price  is  used  in  profit  computations, 
and  it  is  perfectly  true  that  either  will  serve  if  used  in  the 
right  way.  We  are  told  that  some  progressive  merchants, 
who  thoroughly  understand  such  matters,  use  both  the  cost 
and  the  sale  price  as  a  basis,  although  until  recent  j'ears  the 
cost  price  alone  was  used. 

Mr.  Thomas  A.  Fernley,  in  his  book,  The  Right  Way  to 
Figure  Profits,^  advances  the  following  twelve  excellent 
reasons  why  the  percentage  of  profit  should  be  figured  on 
the  selling  and  not  on  the  cost  price: 

First. — Because  the  remuneration  of  salespeople  is  figured  on  a 
certain  percentage  of  the  selling  price. 

1  Quoted  by  permission, 
115 


RETAIL    BUYING 

Second. — Because  the  percentage  of  conducting  business  is  based 
on  the  sale  price.  No  capable  business  man  would  attempt  to  talk 
percentage  of  profit  on  the  cost  and  per  cent,  of  expense  on  the  selling 
price. 

Third. — ^Because  all  taxation  is  based  on  the  percentage  of  gross 
sales. 

Fourth. — ^Because  the  sales  totals  are  always  given  in  books  of 
record — cost  totals  are  seldom  if  ever  used. 

A/f/t.^-Because  a  profit  must  be  provided  for  the  two  items  of 
capital — on  the  capital  invested  in  merchandise — the  other  the 
capital  necessary  for  operating  expenses  and  other  expenditures  not 
properly  chargeable  to  the  merchandise  account.  This  is  only  pos- 
sible by  figuring  profit  on  the  selling  price. 

Sixth. — Because  it  indicates  correctly  the  amount  of  gross  or  net 
profit  when  the  amount  of  sales  is  stated.  The  percentage  of  profit 
on  the  sales  is  indicative  of  character  of  results  of  the  year's  busi- 
ness— percentage  of  profit  on  the  cost  is  not. 

Seventh. — Because  allowances  in  percentage  to  the  customers  are 
always  based  on  the  selling  price. 

Eighth. — ^Because  no  profit  is  made  until  the  saie  is  actually 
effected. 

Ninth. — ^Because  nine  stores  in  len  which  do  not  figiu"e  on  the 
selling  price  get  mixed  somewhere  in  their  figures,  and  do  not  know 
whether  or  not  they  are  going  backward  or  forward. 

Tenth. — Because  the  chain-store  fellows  and  the  big-store  fellows, 
who  press  the  retailer  the  hardest,  do  figure  on  the  seUing  price. 

Eleventh. — Because  it  puts  you  where  a  customer  will  not  be  likely 
to  call  you  a  robber  if  she  learns  that  your  percentage  of  profit  is 
20  per  cent,  of  the  selfing  price  (25  per  cent,  of  the  cost  price). 

Twelfth. — Because,  if  you  figure  on  the  selfing  price,  you  can  go  to 
the  cash  drawer  and  say,  "  10  per  cent,  of  that  money  is  my  profit," 
instead  of  having  to  say,  "  10  per  cent,  of  the  cost  of  the  goods  which 
I  sold  for  this  money  is  my  profit." 

Figuring  Profit.  One  hundred  per  cent,  of  anything  is  all 
of  it.  If  Farmer  Smith  had  a  bushel  of  apples  and  gave  100 
per  cent,  of  them  to  his  son  he  would  have  none  left.  Conse- 
quently, 100  per  cent,  equals  the  sale  price.  Suppose  this 
bushel  of  apples  costs  $1,  the  cost  of  doing  business  is  23  per 
cent,  and  a  profit  of  10  per  cent,  is  desired.    Then  100  per 

116 


DETERMINING  PRICES  AND  PROFITS 

cent.,  minus  33  per  cent.,  the  cost  of  doing  business,  plus 
the  desired  profit,  equals  67  per  cent.,  or  the  cost  of  the 
apples.  The  cost  of  1  per  cent,  is  found  by  dividing  67 
into  $1,  the  cost  price  of  the  apples,  which  equals  .149.  One 
hundred  percent.,  or  the  sale  price,  is  found  by  multiplying 
.149  by  100,  and  the  sale  price  is  found  to  be  $1.49. 

Solution: 
Let  100%  equal  the  sale  price. 
23%  plus  10%  equals  33%  the  mark-up. 
100  minus  33  equals  67%,  or  cost  price. 
1.00  divided  by  67  equals  .149,  or  1%  of  total  sale  price 
100%  equals  100  x  .149  equals  $1.49  sale  price. 

Pricing  Merchandise.  The  fundamental  proposition  at 
the  basis  of  retailing,  therefore,  is  the  pricing  of  merchandise. 
The  success  of  every  retail  business  depends  upon  the  ac- 
curacy with  which  this  is  done  The  antiquated  method, 
taught  the  retailer  by  the  jobber,  of  marking  $2.25  per 
dozen  merchandise  25  cents;  $4.25  per  dozen  merchandise 
50  cents;  $9  per  dozen  merchandise  $1,  etc.,  regardless 
of  what  the  merchandise  looked  like,  is  rapidly  being  dis- 
carded, and  is  being  replaced  by  the  system  of  marking  the 
merchandise  at  the  price  which  it  will  bring  and  still  be 
worth  the  money.  Oftentimes  a  75-cent  commodity  will 
bring  a  better  price  than  an  article  costing  $1.  There  is, 
of  course,  much  difference  between  staples  and  novelties. 
The  grocer  would  be  hard  put  to  it  were  he  forced  to  sell 
delicate  goods  at  the  same  margin  of  profit  as  sugar.  He 
must  make  his  profit  through  the  sale  of  fancy  groceries. 
The  price  must  not  be  too  high  or  the  customers  will  not  buy ; 
it  must  not  be  too  low  or  the  business  and  those  who  compete 
with  it  will  be  destroyed.  It  must  be  just  right,  and  to  estab- 
lish this  correct  price  we  must  rely  on  the  percentage  basis 
of  the  previous  season's  business,  as  well  as  past  experiences. 

This  price  of  the  commodity  is  not  necessarily  its  value; 

117 


RETAIL    BUYING 

it  is  merely  a  measure  of  its  value.  The  supply  and  the 
demand  are  great  factors  in  the  pricing  of  the  merchan- 
dise. For  instance,  before  the  beginning  of  the  European 
war  a  certain  grade  of  taffeta  silk  cost  67^  cents  per  yard, 
and  sold  for  95  cents.  The  season  was  not  a  good  one  for 
this  particular  kind  of  silk,  and  plain  colors  would  not  bring 
a  bettef  price.  Some  of  the  novelties,  however,  sold  for  $1.10. 
The  fall  season  of  1916,  being  an  excellent  one  for  this  type 
silk,  brought  a  heavy  demand.  This  fact,  together  with  the 
dye  scarcity,  caused  prices  to  soar.  This  same  quality,  sup- 
posedly, cost  $1  and  sold  for  $1.35.  The  quality  was  poorer 
because  of  the  increase  in  the  price  of  dye  materials,  and 
the  silk  was  weighted  more  heavily.  Because  ''Dame 
Fashion"  favored  this  silk  the  manufacturer  was  able  to 
ask  a  higher  price  (true,  it  cost  more,  in  proportion,  to  manu- 
facture), and  the  customer  was  willing  to  pay  a  higher  price 
for  an  inferior  grade.  The  customer's  want  is  great  enough 
to  cause  her  to  pay  the  advance  on  the  inferior  article. 

The  average  percentage  of  profit  is  not  found  in  order  that 
all  merchandise  may  be  marked  on  that  basis  of  gross  profit, 
but  merely  in  order  that  the  merchant  may  use  the  figures 
as  a  guide  in  determining  the  selling  price.  Each  commodity, 
with  the  exception  of  branded  articles,  which  must  be  sold  at  a 
price  fixed  by  the  manufacturer,  and  articles  of  which  the  price 
is  fixed  by  competition,  should  be  exammed  and  the  price  fixed 
according  to  what  it  will  bring.  The  shrewd  buyer  will  often 
buy  merchandise  of  exceptional  valuation.  Frequently  $4.50 
per  dozen  hosiery,  which  would  have  been  sold,  according  to 
the  old  system  of  marking  on  the  cost  price,  50  cents,  will  be 
exceptional  value  at  60  cents  per  pair.  The  efficient  mer- 
chandizer  knows,  too,  that  in  order  to  make  the  necessary 
profit,  he  must  mark  a  long  profit  on  the  slow  sellers  and  a 
short  profit  on  the  swifter-selling  commodities. 

Mark-up.     When   the  buyer  or  retailer  thmks  of  profit 

118 


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DETERMINING    PRICES   AND   PROFITS 

he  must  necessarily  think  of  the  mark-up,  as  the  mark-up 
is  the  sure  gauge  to  the  profit.  He  knows  that  the  mer- 
chandise costs  so  much  in  the  first  place,  the  cost  of  doing 
business  amounts  to  a  certain  percentage,  a  certain  percent- 
age must  be  allowed  for  depreciation,  and  an  additional 
percentage  must  be  added  for  the  profit  expected.  Hence 
the  total  percentage  of  the  cost  of  doing  business,  percentage 
of  depreciation,  and  percentage  of  profit  expected  must  be 
the  necessary  mark-up.  In  other  words,  the  mark-up  is 
the  difference  between  the  cost  and  the  selling  price. 

Figuring  Percentage  of  Mark-up.  The  percentage  of 
mark-up  is  obtained  by  subtracting  the  cost  price  from  the 
selling  price  and  dividing  the  result  by  the  selling  price — i.e., 
when  the  percentage  on  the  selling  price  is  required.  How- 
ever, let  it  be  noted  that  when  cost  percentages  are  desired 
the  division  is  made  on  cost  figures,  and  selling  percentages 
on  the  selling  figures.  In  other  words,  divide  the  result 
or  difference  between  the  cost  and  selling  figures  by  the  basis 
on  which  the  percentage  is  desired.  For  example:  The 
merchant  buys  a  set  of  harness  costing  $16  and  marks  it  to 
sell  for  $25.  The  difference  between  the  cost  and  the  selling 
price  is  $9,  and  to  find  the  mark  upon  selling  price,  9  is 
divided  by  25,  the  selling  price,  and  the  result  is  36  per  cent. 
To  find  the  mark-up  on  the  cost  price,  9  is  divided  by  16, 
the  cost  price,  and  the  result  is  56)^  per  cent,  mark-up  on 
cost. 

The  fouowing  chart  shows  a  comparison  of  percentages 
based  on  the  cost  figures  with  those  based  on  the  selling.  As 
a  guide  in  establishing  the  prices  at  which  the  merchandise 
is  to  be  sold,  the  buyers  in  some  stores  are  furnished  with 
these  comparison  cards.  On  these  cards  the  relation  between 
the  per  cent,  of  mark-up  on  the  cost  and  the  per  cent,  of  mark- 
up on  the  retail  is  showTi  in  the  parallel  vertical  columns.    On 

this  we  see  that  if  we  add  for  the  profit  an  equal  amount  to 

U9 


RETAIL   BUYING 

25  per  cent,  of  the  cost  we  will  realize  a  profit  of  only  20  per 
cent,  of  the  sales  figures  if  the  goods  are  sold  as  originally 
marked.   So,  also: 

33J^%  of  the  cost  equals  25%  of  the  retail. 
40%  of  the  cost  equals  28.57%  of  the  retail. 
43%  of  the  cost  equals  30.07%  of  the  retail.' 
82%  of  the  cost  equals  45.05%  of  the  retail. 

The  following  is  a  complete  table  of  the  ratios  of  per- 
centages of  mark-up  or  cost  to  those  on  selling  price: 


Cost 

Selling 

Cost 

SeUmg 

Cost 

SeUing 

Cost 

Selling 

01 

00.99 

26 

20.63 

51 

33.77 

76 

43.18 

02 

01.96 

27 

21.26 

52 

34.21 

77 

43.50 

03 

02.91 

28 

21.88 

53 

34.64 

78 

43.82 

04 

03.84 

29 

22.48 

54 

35.06 

79 

44.13 

05 

04.76 

30 

23.07 

55 

35.48 

80 

44.44 

06 

05.66 

31 

23.66 

56 

35.90 

81 

44.75 

07 

06.54 

32 

24.24 

57 

36.31 

82 

45.05 

08 

07.40 

33 

25 

58 

36.71 

83 

45.35 

09 

08.25 

34 

25.37 

59 

37.11 

84 

45.65 

10 

09.09 

35 

25.92 

60 

37.50 

85 

45.94 

11 

09.90 

36 

26.47 

61 

37.89 

86 

46.23 

12 

10.71 

37 

27 

62 

38.27 

87 

46.52 

13 

11.50 

38 

27.54 

63 

38.65 

88 

46.80 

14 

12.28 

39 

28.06 

64 

39.02 

89 

47.08 

15 

13.04 

40 

28.57 

65 

39.39 

90 

47.36 

16 

13.79 

41 

29.08 

66 

39.76 

91 

47.64 

17 

14.52 

42 

29.57 

67 

40.11 

92 

47.91 

18 

15.25 

43 

30.07 

68 

40.46 

93 

48.18 

19 

15.96 

44 

30.55 

69 

40.82 

94 

48.45 

20 

16M 

45 

31.03 

70 

41.17 

95 

48.71 

21 

17.35 

46 

31.50 

71 

41.52 

96 

48.97 

22 

18.03 

47 

31.97 

72 

41.86 

97 

49.23 

23 

18.69 

48 

32.43 

73 

42.20 

98 

49.49 

24 

19.35 

49 

32.88 

74 

42.53 

99 

49.74 

25 

20 

50 

33H 

75 

42.86 

100 

50 

X20 


PART  IV 
STOCK   SYSTEMS 


\ 


THE   TURNOVER 

Turnover.  One  of  the  most  vital  considerations  in  re- 
tailing is  the  turnover.  This  is  especially  true  now  owing 
to  rising  costs  and  keen  competition.  The  average  merchant 
does  not  realize  that  the  greatest  profit  is  to  be  made  from 
the  small  stock  and  the  quick  sale.  Instead  of  buying  mer- 
chandise in  small  quantities,  and  buying  frequently,  they 
tie  up  their  capital  and  lose  profits  unnecessarily.  Profits 
are  not  made  on  left-overs,  but  on  turnovers.  Turnovers 
spell  profits,  while  carry-overs  spell  losses.  Overbuying,  in 
a  word,  means  underturning,  and  underturning  means  di- 
minished prestige,  profit,  and  growth  for  the  store. 

A  certain  Wisconsin  merchant  who  is  one  of  the  old  school, 
and  conducts  his  business  along  the  lines  his  father  practised 
twenty  years  back,  recently  asked  this  question:  "What  is 
the  use  of  limiting  stocks  when  I  have  plenty  of  capital  to 
put  into  them?" 

Finally  he  was  persuaded  to  limit  each  department  in 
the  store,  for  a  period  of  six  months,  to  see  what  changes 
would  take  place.  The  result  was  that  he  cut  a  $120,000 
stock  to  $110,000,  and  did  more  business.  Now  this  mer- 
chant is  greatly  interested  in  turnover;  he  realizes  that  he 
is  making  a  far  better  profit  and  doing  more  business  with 
a  much  cleaner  stock  of  merchandise. 

A  striking  evidence  of  the  advantage  of  effective  stock 

123 


RETAIL   BUYING 

turnover  is  to  be  found  in  the  example  of  the  United  Cigai 
Stores  Company's  success.  It  is  said  that  before  this  con- 
cern will  choose  a  location  for  a  new  store  it  is  customary 
to  station  men  in  close  proximity  to  the  proposed  location, 
who  take  an  actual  physical  count  of  the  men  who  will 
pass  within  a  given  space  of  time.  The  figure  gives  them  the 
number  of  possible  customers  the  store  can  hope  to  appeal 
to  with  its  wares.  Of  course,  not  every  man  who  passes  is 
a  smoker.  They  know  what  portion  of  all  men  smoke,  and 
when  the  total  number  of  passers-by  reaches  this  figure, 
which  their  experience  tells  them  would  make  it  possible  to 
establish  a  paying  store  in  that  vicinity,  a  new  one  is  opened. 
Contrary,  however,  to  the  practice  of  the  department  store, 
instead  of  locating  at  the  point  of  greatest  traffic  and  build- 
ing a  mammoth  store  to  bring  the  largest  possible  return, 
they  choose  the  busiest  spots  and  open  a  store  of  small 
dimensions. 

The  United  Cigar  Stores'  business  is  profitable  because 
they  have  developed,  to  what  is  perhaps  a  greater  efficiency 
than  any  other  line  of  business,  the  principle  of  quick  and 
constant  stock  turnover,  and  this,  too,  in  a  business  where 
every  item  of  stock  carried  may  be  said  to  be  a  staple  com- 
modity. The  buyer  in  other  lines  of  goods  can  perhaps  see 
no  connection  between  his  interests  and  the  interests  of  the 
cigar  merchant.  The  experience  of  the  small  cigar-store  is 
one  which  the  average  buyer  may  well  consider,  however. 
If  the  ratio  of  profit  in  the  tobacco  business  is  based  on  the 
frequency  of  stock  turnover,  the  same  principle  applies  to 
other  kinds  of  stocks.  More  money  is  made  in  actual  profit 
by  speedy  turnover  of  stock  than  is  made  in  a  slow-turning 
business  of  higher  gross  sales.  To  illustrate  this,  a  store 
doing  an  annual  business  of  $100,000  on  a  capital  of  $33,000 
might  be  considered  a  staple  proposition  if  it  could  show  a 

net  profit  of  10  per  cent,  on  the  amount  of  business  repre- 

124 


THE    TURNOVER 

sented.  This  would,  in  reality,  be  a  profit  of  28^  per  cent. 
on  capital  invested.  But  if  the  merchant  could  increase  his 
business  to  $200,000  with  the  same  capital,  he  is  making 
57  per  cent,  profit  on  his  capital. 

A  hardware  merchant  in  a  small  town  remarked  that  it 
was  impossible  to  make  any  kind  of  stock-turn  in  the  hard- 
ware business,  because  there  were  so  many  lines  to  be  pur- 
chased in  bulk,  where  there  was  practically  no  profit  to  be 
made.  True,  the  merchant  buys  this  way,  but  it  is  not 
necessary  that  he  should.  Take,  for  instance,  the  reserve 
kegs  of  nails  kept  under  the  counters.  Some  of  them  stay 
there  three  years,  waiting  for  the  customer  who  is  in  a  hurry 
for  a  full  keg  of  nails.  They  may  be  kept  five  years,  or  ten 
years.  The  capital  tied  up,  the  amoimt  of  space  that  these 
nails  occupy,  and  the  possible  demand  must  be  considered. 
Money  may  be  made  by  selling  nails,  but  the  stocks  must 
be  watched  and  turned  often.  Consider  the  small  profits  to 
be  made  in  the  grocery  business.  Nails  net  equally  as  much 
profit  as  some  lines  of  groceries,  but  they  do  not  sell  as 
readily.  The  successful  grocer  watches  and  works  his  slow- 
moving  lines,  because  he  knows  it  is  not  the  amount  of 
capital  he  has  in  his  business  but  how  hard  he  works  this 
capital  that  counts. 

The  larger  department  store  is  forced  to  recognize  its 
smaller  competitor  whose  turnover  is  more  rapid.  In  some 
cases  the  smaller  store  is  drawing  trade  away  from  the  big 
one  because  it  is  watching  details  with  greater  energy,  its 
stock  is  smaller  and  cleaner,  and  the  merchandise  is  sold 
for  less  money.  By  buying  the  merchandise  in  small  quan- 
tities these  stores  are  never  forced  to  sell  something  that  the 
customer  does  not  want.  The  manufacturers  and  the  job- 
bers are  being  forced  to  carry  the  load.  The  merchant  can 
order  merchandise,  in  most  lines,  as  he  needs  it. 

Suppose  a  merchant,  with  an  average  expense  of  20  per 

125 


RETAIL    BUYING 

cent.,  buys  five  portable  houses,  to  be  sold  at  $2,000  each, 
costmg  $1,000  each.  Should  he  sell  all  of  these  within  the 
first  year,  he  will  make  a  net  profit  of  $3,000.  But  should 
he  fail  to  sell  all  of  these  houses  within  the  year,  this  net 
profit  will  diminish  in  proportion  to  the  time  required  to  sell 
them;  the  houses  will  also  decrease  in  valuation  yearly.  On 
the  other  hand,  should  this  merchant  have  invested  $5,000 
in  milUnery  or  groceries,  the  expense  of  selling  remaining 
at  20  per  cent.,  and  if  he  sold  this  lot  of  merchandise  for 
$7,000,  a  net  profit  of  $600  would  be  realized  on  the  trans- 
action. If  he  had  the  ability  to  turn  this  stock  ten  times 
per  year  he  would  make  a  net  profit  of  $6,000.  In  the  first 
instance  a  great  gross  profit  was  made,  but  it  did  not  equal 
the  net  profit  made  in  the  latter  case  by  the  frequency  of 
the  turnover. 

How  Fast  Twenty  Grocery-stores  Turn  Their  Stocks. 
The  annual  stock-turn  in  stores  which  sell  groceries  only 
has  been  found  by  the  Harvard  Bureau  of  Business  Research 
to  range  from  3.5  to  23.8.  The  majority  of  stores  in  this  class, 
however,  have  a  stock-turn  of  from  4  to  10,  averaging  around 
7.  There  are  many  stores  which  turn  their  stocks  every 
month,  thus  making  12  turns  per  year.  This  should  be  taken 
as  a  standard  to  be  aimed  at  by  every  progressive  grocer. 

Grocery-stores  which  sell  meats  and  provisions  as  well  as 
groceries  have  a  higher  average  stock-turn  than  stores  sell- 
ing groceries  only.  This  is  due  perhaps  to  the  fact  that  the 
former  carry  more  perishable  goods  which  must  be  disposed 
of  quickly.  The  lowest  stock-turn  in  this  class  of  stores  is 
7,  the  highest  26.4,  averaging  about  9.  A  small  group  of 
this  class  of  store  make  14  stock-turns  per  year. 

Methods  of  Figuring  Stock-turns.  There  is  quite  a  differ- 
ence in  the  method  used  for  figuring  stock-turns  in  various 
retail  stores.     One  merchant  hears  another  tell  how  many 

times  he  turns  his  stock  and  what  system  he  uses  in  making 

126 


THE   TURNOVER 

his  calculations.  He  immediately  changes  the  method  he  has 
been  using,  regardless  of  the  fact  that  it  has  been  accurate 
and  satisfactory  to  the  best  of  his  knowledge,  and  accepts 
the  other  man's  system  as  being  correct.  The  following  five 
methods  have  been  found  in  use  in  various  stores : 

1.  Divide  the  sales  for  the  year  by  the  inventory,  which 
is  taken  at  the  cost  price. 

2.  Divide  the  annual  sales  by  the  supposed  average  m- 
ventory,  which  is  found  by  adding  the  cost  price  of  the  mer- 
chandise at  the  beginning  of  the  year  and  at  the  end  of 
the  year,  and  dividing  by  two. 

3.  Divide  the  armual  sales  by  the  true  average  inventory, 
month-end  computations  being  made  to  get  this  average. 

4.  Divide  the  annual  sales  by  the  true  average  inventory, 
which  is  taken  at  the  sales  price  instead  of  the  cost  price. 

5.  Divide  the  cost  price  of  the  merchandise  sold  during 
the  year  by  the  true  average  inventory  taken  at  the  cost  price. 

All  five  of  the  given  methods  cannot  be  correct,  as  we  do 
not  get  the  same  turnover  from  each.  In  order  to  find  the 
correct  method  it  is  necessary  that  we  illustrate  with  a  given 
business  transaction.  Merchant  A  begins  the  year  with  a 
$7,000  stock  (cost  price),  the  sales  for  the  year  amount  to 
$20,000,  and  he  inventories  an  $8,000  stock.  The  gross  profit 
amounted  to  30  per  cent. 

In  analyzing  method  No.  1,  $20,000,  the  sales  for  the 
year,  is  divided  by  $8,000,  the  inventory  taken  at  the  end  of 
the  year,  at  cost.  The  answer  would  be  two  and  one-half 
times.  But  this  cannot  be  true.  In  the  first  place,  the  in- 
ventory is  taken  at  the  cost  price,  and  is  therefore  not  com- 
parable with  the  sales.  In  the  second  place,  the  inventory 
was  taken  at  the  end  of  the  year,  a  time  when  all  of  the 
stocks  are  at  their  lowest  point,  and  it  is  impossible  to  use 
this  inventory  as  a  true  average. 

Method  No.  2  is  analyzed  by  dividing  $20,000,  the  annual 

127 


RETAIL   BUYING 

sales,  by  $7,500,  the  average  of  the  two  inventories — i.e.,  the 
amount  of  goods  or  merchandise  on  hand  at  the  beginning 
of  the  year  and  at  the  end  of  the  year.  This  would  give  us 
a  turnover  of  two  and  two-thirds  times.  But  this  also  is  in- 
accurate. The  $7,500  inventory  is  not  correct.  True,  it  ia 
the  average  at  the  beginning  and  the  end  of  the  year,  but  it 
does  not  represent  the  true  average  of  the  stock.  In  this 
case,  also,  the  sales,  which  represent  the  selling  price  of  the 
merchandise  sold,  was  compared  to  the  cost  price  of  the  mer- 
chandise inventoried,  which  is  impossible. 

Method  No.  3  can  be  analyzed  by  dividing  $20,000,  the 
annual  sales  for  the  year,  by  $8,800,  the  true  average  in- 
ventory (at  cost  price),  which  is  found  by  month-end  com- 
putations. The  stock-turn  in  this  case,  should  this  be  the 
correct  method  of  computing  the  turnover,  would  be  two 
and  three-elevenths.  In  this  case  we  have  used  the  right 
system  of  finding  the  true  average  inventory  of  stock  on 
hand  as  the  amount  of  stock  on  hand  each  month-end  is 
added,  and  the  aggregate  is  divided  by  twelve,  the  number  of 
months'  figures  added.  But  we  are  still  trying  to  compare 
the  sales  at  the  selling  price  with  the  cost  price  of  the  mer- 
chandise, and  this  is  an  impossibility. 

In  method  No.  4  we  have  a  different  proposition  to  handle. 
The  $20,000,  the  annual  sales  for  the  year,  is  divided  by 
$12,572.50,  the  sale  price  of  the  average  inventory  or  mer- 
chandise on  hand  for  the  year.  The  true  average  inventory, 
$8,800,  is  changed  to  the  selling  price  by  simple  percentages. 
The  gross  profit  amounts  to  30  per  cent.,  and  100  per  cent, 
equals  the  selling  price.  Therefore,  100  per  cent.,  minus  30 
per  cent.,  equals  70  per  cent.  $8,800  equals  70  per  cent.; 
1  per  cent,  is  70  divided  into  $8,800,  which  equals  125.714,  and 
100  times  this  125.714  equals  $2,571.40.  This  gives  us  a 
stock-turn  of  1.59.  In  this  case  we  have  divided  the  sales 
for  the  year  with  the  inventory  of  merchandise  which  has 

128 


THE   TURNOVER 

been  taken  at  sale  price.  This  is  correct,  as  we  can  compare 
the  sales  against  the  selling  price  of  the  merchandise  on  hand. 
It  is  also  correct  to  use  the  average  stock  on  hand. 

Method  No.  5  is  practically  the  same  as  method  No.  4, 
with  the  exception  that  the  figures  are  expressed  in  costs 
instead  of  the  selling  price — i.e.,  $14,000,  which  represents 
the  cost  price  of  the  S20,000  sales  for  the  year,  is  divided  by 
the  $8,800,  the  average  stock  on  hand,  and  the  answer  is 
1.59.  This  system  is  perfectly  correct.  It  is  practically  the 
same  as  the  previous  one.  In  one  case  the  cost  price  is  used 
as  a  basis,  and  in  the  other  case  the  sale  price  is  used  as  a 
basis. 

We  have  proved  that  there  are  only  two  methods  of  finding 
the  true  turnover;  one  being  to  divide  the  sales  for  the  year 
by  the  average  inventory,  the  inventory  to  be  computed 
monthly  at  the  selling  price  (note  this  compares  the  sales, 
at  selling  price,  against  the  average  merchandise,  which  is 
also  taken  at  the  sale  price) ;  the  other  method  is  to  divide 
the  merchandise  sold  during  the  year  by  the  average  monthly 
inventory  at  cost.  Of  course,  some  stores  have  a  method  of 
computing  inventory  oftener  than  once  per  month,  some 
weekly  or  semi-weekly. 

Table  showing  stock  turnovers  for  various  lines: 

Average  Number 
Type  of  Store  Turnovera  made 

Annually 

Department  stores 6.5 

Drug 5.0 

Drj^-goods 4.5 

Variety  goods 5.5 

Furniture 3.0 

Grocery 12.0 

Hardware 3.8 

Jewelry 1.5 

Shoe 2.5 

Clothing 2.0 

9  129 


RETAIL    BUYING 

STOCK-TURNS  IN  DEPARTMENT  STORES 

Merchandise  Stock-turn.     The  figures  on  the  next  page 

are  based  on  statistics  taken  from  the  books  of  one  of  the 
largest  department  stores  on  the  Pacific  coast.  These  figures 
are  intended  to  show  how  many  times  the  selling  price  of 
the  1913  sales  of  each  of  the  store's  departments  contained 
its  average  stock  at  seUing  price.  The  merchandise  handled 
by  this  store,  like  that  of  many  others  in  this  country,  is 
very  largely  of  the  popular-  and  medium-priced  kinds. 
Hence  its  figures  cannot  be  accepted  as  applying  to  all 
types  of  retail  stores  generally.  Nevertheless,  they  will 
prove  interesting  from  the  standpoint  of  comparison. 

We  must  draw  attention  to  the  fact,  moreover,  that 
the  figures  shown  here  are  not  based  on  the  cost  price 
of  each  department's  average  stock,  but  represent  mer- 
chandise stock-turns.  In  short,  the  figures  presented  are 
based  on  the  selling  price  of  the  average  stock  carried  by  each 
department.  The  small  figures  in  this  table  represent 
tenths;  thus  the  stock  of  the  store's  art-goods  department 
(the  first  item  in  the  table)  was  turned  two  and  seven-tenths 
times  during  1913. 

How  Computations  Were  Made.  A  few  words  more  to 
summarize  and  emphasize  how  these  figures  were  computed: 

1.  At  each  month's  end  during  1913,  in  the  office  of  the 
Pacific  coast  store,  to  which  we  are  indebted  for  the  sta- 
tistics, an  estimate  was  made  of  the  selling  price  of  the 
approximate  amount  of  stock  then  on  hand  in  each  de- 
partment. 

2.  At  the  year's  end,  to  find  its  average  stock  (for  the  year) 
each  department's  twelve  selling-price  month 's-end  stock 
estimates  were  added  together,  and  their  total  thus  found 
was  divided  by  twelve. 

3.  Next,  the  total  of  each  department's  sales  for  the  year 

130 


THE    TURNOVER 

was  divided  by  its  average  stock  for  the  year.    Here  are  the 
figures : 

Departments  1913  "Turns" 

Art  embroidery,  stamped  linens,  etc.,  see  Art  goods. 

Art  goods 2.7 

Baby  carriages,  see  Toys. 
Baskets,  see  Toys. 
Belts,  see  Leather  Goods. 

Beds  and  bedding  (including  blankets,  comforts,  etc.) 4.8 

Blankets  and  Comforts,  see  Beds. 

Books 3.0 

Boys'  clothing,  see  Clothing. 
Boys'  hats,  see  Hats. 

Cameras 6.0 

Candy 11.9 

Carpets,  mattings,  linoleum,  and  domestic  rugs 2.7 

Chiffon,  see  Neckwear. 

China,  glassware,  lamps,  electric-hghting  fixtures,  etc 1.4 

Clocks,  see  Jewelrj'. 

Clothing  (Boys') 2.7 

Clothing  (Men's) 3.4 

Coats  (Women's  and  Misses'),  see  Suits. 

Corsets 4.3 

Domestics,  including  wash  goods,  flannels,  etc 3.8 

Dress  goods  (Wool,  etc.) 2.3 

Dress  trimmings,  see  Neckwear. 
Druggist  sundries,  see  Toilet  goods. 
Electric-hghting  fixtures,  see  China. 

Embroideries 2.0 

Flannels  and  wash  goods,  see  Domestics. 

Frames,  see  Pictures. 

Glassware,  see  China. 

Gloves  (Men's),  see  Men's  furnishings. 

Gloves  (Women's  and  children's) 2.9 

Groceries 11.2 

Hair  goods,  not  including  toupees,  switches  to  order,  hair- 
dressing,  or  manicuring 5.3 

Handkerchiefs  (Men's) ,  see  Men's  furnishings. 
Handkerchiefs  (Women's),  see  Umbrellas. 
Hardware,  see  House-furnishings. 

131 


RETAIL    BUYING 

Departments  1913  "  Turna  " 

Hats  (Men's  and  Boys') 1.8 

Hosiery  (Men's),  see  Men's  furnishings. 

Hosiery  and  knit  underwear  (Women's  and  Children's) 3.0 

House  dresses,  etc 3.2 

Infants'  wear 2.9 

Jewehy,  clocks,  and  silverware  2.1 

Knit  underwear  (Men's) ,  see  Men's  furnishings. 

Knit  underwear  (Women's  and  Children's),  see  Hosiery. 

Lace  curtains,  see  Upholsteries. 

Laces 2.4 

Lamps,  see  China. 
Lawns,  see  White  goods. 

Leather  goods,  belts,  etc 3.1 

Linens,  sheets,  sheetings,  etc 2.4 

Lmens,  stamped,  see  Art  goods. 

Linings 3.5 

Linoleum,  see  Carpets. 

Mattings,  see  Carpets. 

Men's  clothing,  see  Clothing. 

Men's  furnishings,  including  men's  hosiery,  gloves,  underwear, 

and  handkerchiefs 2.3 

Men's  hats,  see  Hats. 

Men's  shoes,  see  Shoes. 

Men's  underwear,  see  Men's  furnishings. 

MilUnery 6.5 

MusUn  underwear 3.0 

Neckwear  (Women's),  chiffon,  and  trimmings 7.4 

Neckwear  (Men's),  see  Men's  furnishings. 

Notions 3.5 

Parasols,  see  Umbrellas. 

Patterns 2.7 

Perfumery,  see  Toilet  goods. 
Petticoats,  see  Waists. 

Pictures,  frames,  etc 4.1 

Ribbons 6.4 

Rugs  (domestic),  see  Carpets. 

Sewing-machines 2.4 

Sheets,  sheetings,  etc.,  see  Linens. 

Shirts,  etc.  (Men's),  see  Men's  furnishings. 

Shoes  (Men's,  Women's,  Misses',  and  Children's) 2.2 

132 


THE   TURNOVER 

Departmenta  1913  "Turns" 

Silks  and  velvets 2.4 

Silverware,  see  Jewelry. 

Sporting  goods,  trunks,  suit-cases,  etc 2.3 

Stamped  linens,  see  Art  goods. 

Stationery 2.9 

Suit-cases,  see  Sporting  goods. 

Suits  and  coats  (Misses') 3.9 

Suits  and  coats  (Women's) 5.2 

Sweaters  (Women's),  see  Waists. 
Tinware,  see  House  fumishdngs. 

Toilet  goods,  druggist  sundries,  perfumery,  etc 3.4 

Toys,  baskets,  and  baby-carriages 2.3 

Trimmings,  see  Neckwear. 

Trunks  and  suit-cases,  see  Sporting  goods. 

Umbrellas,  parasols,  and  women's  handkerchiefs 3.0 

Underwear  (Men's),  see  Men's  furnishings. 

Underwear,  knit  (Women's  and  Children's),  see  Hosiery. 

Underwear,  muslin,  see  Muslin. 

Upholsteries,  lace  curtains,  etc.  (but  not  including  wall-paper)     3 . 4 

Velvets,  see  Silks. 

Waists,  petticoats,  women's  sweaters,  etc 3.9 

Wash  goods,  flannels,  etc.,  see  Domestics. 

White  goods  and  lawns 3.5 

Capital  Turns.  A  department  head  in  a  Western  store, 
being  allowed  a  working  capital  of  $10,000,  realized  that  his 
opportunity  for  making  a  success  lay  in  his  ability  to  turn 
his  capital  as  well  as  his  merchandise.  The  method  used 
was  to  invest  the  $10,000  as  many  times  as  possible  during 
the  year.  This  buyer,  being  a  shrewd  judge  of  rugs,  carpets, 
and  linoleums,  made  a  practice  of  attending  auction  sales 
and  buying  considerable  merchandise  at  each  sale.  Because 
the  buyer  could  use  quantities  and  because  of  his  broad 
knowledge  of  merchandise,  excellent  values  were  to  be  had 
at  less  than  market  price.  By  giving  the  customers  excel- 
lent values  for  moderate  prices  the  merchandise  sold  freely, 

and  the  buyer  was  able  to  buy  frequently.    During  the  first 

133 


RETAIL    BUYING 

four  fall  months  of  1916  $48,000  was  taken  in  in  this  de- 
partment. This  meant  that  the  capital  had  worked  four 
and  eight-tenths  times  during  the  period. 

Computing  Capital  Turns.  The  average  merchandise  on 
hand  (at  cost  price)  is  divided  into  the  total  sales  (at  selling 
price)  for  the  year  to  determine  the  capital  turns.  For  in- 
stance, $10,000  was  the  average  investment  in  the  depart- 
ment described,  and  $48,000  was  the  sales  for  the  first 
four  months.  This  means  that  the  $10,000  is  divided 
into  $48,000,  and  we  find  that  the  capital  was  turned 
four  and  eight-tenths  times. 

We  present  here  a  schedule  showing  the  same  store's 
capital  turns  for  the  period.  In  a  word,  the  following  table 
shows  how  many  times  the  selling  price  of  the  1914  sales  of 
each  department  in  the  store  contained  the  respective  de- 
partment's average  stock  (for  the  year)  at  cost  price. 

These  figures  are  valuable  when  used  exactly  in  this  way 
— to  show  how  a  buyer  is  using  the  allotment  for  his  depart- 
ment. They  caimot  be  used  to  compute  the  true  stock-turn 
figures  for  the  whole  business,  because  they  are  obtained  by 
using  one  set  of  figures  on  the  cost  basis  and  one  on  the  retail 
basis.  It  will  be  noticed  that  the  figures  are  relatively  higher 
than  the  corresponding  figures  above  for  the  true  or  stock 
turnover. 

Departments  ^  1914  "  Turns " 

Art  Embroidery 3.0 

Baby-carriages,  see  Toys. 
Belts,  see  Leather  goods. 

Blankets,  comforts,  etc 4.8 

Books,  periodicals,  etc 3.4 

Boys'  clothing,  see  Clothing. 
Boj^s'  hats,  see  Hats. 
Buttons,  see  Notions. 

Cameras.. 7.2 

China,  glassware,  etc 2.5 

134 


THE    TURNOVER 

Departments  1914  "Turns" 

Clothing  (Boys') 4.8 

Clothing  (Men's) 5.0 

Clothing  (Merchant  tailoring) 4.0 

Coats  (Women's  and  Misses'),  see  Suits. 

Corsets,  brassieres,  etc 7.8 

Cotton  sheets,  pillow-cases,  etc 10.7 

Dresses,  see  Suits. 

Dress  goods  (Wool,  etc.) 4.8 

Dress  trimmings,  see  Laces. 
Electrical  apphances,  see  Lamps. 

Embroideries 3.4 

Flannels,  see  Wash  goods. 

Furs 1.9 

Glassware,  see  China. 

Gloves  (Women's  and  Children's) 4.3 

Gloves  (Men's),  see  Men's  furnishings. 

Handkerchiefs 4.7 

Hardware,  see  House  furnishings. 

Hats  (Men's  and  Boys') 4.2 

Hosiery  (Women's  and  Cliildren's) 4.2 

Hosiery  (Men's),  see  Men's  furnishings. 

House-dresses,  see  Neghgees. 

House  furnishings,  not  including  trunks  and  baby-carriages . .     6.4 

Infants'  wear,  etc 3.8 

Jewelry,  silverware,  etc 4.0 

Kimonos,  see  Negligees. 

Knit  underwear,  etc.  (Women's  and  Children's) 3.1 

Knit  imderwear  (Men's),  see  Men's  furnishings. 

Laces,  trimmings,  etc 3.3 

Lamps,  shades,  electrical  appliances,  etc 3.3 

Leather  goods,  etc 9.7 

Linens 3.1 

Linings 9.6 

Men's  clothing,  see  Clothing. 

Men's  hats,  see  Hats. 

Men's  furnishings,  including  men's  gloves,  underwear,  hosieiy, 

etc 3.4 

Men's  underwear,  see  Men's  furnishings. 
Men's  shoes,  see  Shoes. 
Merchant  tailoring,  see  Clothing. 

135 


RETAIL   BUYING 

Departments  1914  "  Turns  " 

Millinery 11.5 

Muslin  underwear,  etc 5.0 

Neckwear,  etc.  (Women's) 14.2 

Neckwear  (Men's),  see  Men's  furnishings. 

Negligees,  including  petticoats,  house-dresses,  kimonos,  etc. .     4.6 

Notions,  buttons,  etc 6.0 

Patterns 10.1 

Petticoats,  see  Negligees. 

Ribbons 5.3 

Sheetings,  etc.  (Cotton),  see  Cotton. 
Sheetings,  etc.  (Linen),  see  Linens. 

Shoes,  etc.  (Men's) 2.8 

Shoes,  etc.  (Women's,  Misses',  and  Children's) 2.9 

Silks  and  Velvets 4.2 

Silverware,  see  Jewelry. 

Stationery,  including  commercial  stationery,  etc 3.0 

Suits,  coats,  etc.  (Misses') 6.6 

Suits,  coats,  etc.  (Women's) 8.9 

Suit-cases,  see  Trunks. 

Sweaters  (Men's),  see  Men's  furnishings. 

Sweaters  (Women's  and  Children's),  see  Waists. 

Toilet  goods,  etc 6.3 

Toys,  baby-carriages,  etc 4.5 

Trimmings,  see  Laces. 

Trunks,  bags,  suit-cases,  etc 8.4 

Underwear,  knit  (Women's  and  Children's),  see  Knit. 
Underwear  (Men's),  see  Men's  furnishings. 
Underwear,  muslin,  see  MusUn. 

VeiUngs,  etc 4.7 

Velvets,  see  Silks. 

Waists  and  women's  and  children's  sweaters 6.9 

Wash  goods,  flannels,  etc 4.8 


To  Find  Average  Stocks.    The  following  method  was  used 

in  computing  each  department's  average  stocks.     At  each 

week's  end  during  the  year  the  amount  of  stock  then  on 

hand  in  each  department  was  estimated.    At  the  year's  end, 

therefore,  there  were  available  for  each  department   (in- 

136 


THE    TURNOVER 

eluding  the  amount  of  the  stock  with  which  the  respective 
departments  started  the  year)  53  stock  figures.  In  each 
case,  at  the  year's  end  a  department's  53  stock  figures  were 
totaled  and  their  sum  divided  by  53;  the  result  thus  obtained 
was  set  down  as  the  respective  department's  average  stock 
for  the  year. 


XI 


THE  INVENTORY 

Inaccurate  Inventories  Cause  Many  Failures.  Failure  to 
make  accurate  inventories  is  the  cause  of  many  failures  to 
make  money,  and  usually  leads  into  bankruptcy.  It  is  the 
unknown  which  is  threatening.  But  when  the  cloud  is  known 
to  be  a  cloud  only,  it  loses  its  menacing  effect.  If  a  retailer 
is  not  disposed  to  be  classed  as  an  "extra-hazardous"  credit 
risk,  he  will  be  ready  with  facts  and  figures  to  submit  to  his 
banker,  or  others  who  have  a  right  to  know  of  his  financial 
condition. 

An  inventory  amounts  to  nothing  if  it  is  not  an  accurate 
statement,  showing  the  financial  standing  as  well  as  the  proper 
condition  of  the  stock  of  merchandise  on  hand.  Notwith- 
standing the  fact  that  most  merchants  agree  to  this,  many 
stores  are  to  be  found  where  the  proprietor  marks  the 
cost  on  the  merchandise  when  receiving  it,  and  then  inven- 
tories it  year  after  year  at  this  cost  price,  regardless  of  the 
fact  that  the  market  price  might  be  20  per  cent,  higher  or, 
more  likely,  50  per  cent,  lower  than  at  the  time  of  purchase. 
The  merchant  who  disregards  his  commodity  is  only  fool- 
ing himself.  Modern  inventory  systems  suggest  that  every 
dollar's  worth  of  stock  be  inventoried  for  what  it  is  actually 
worth — not  what  the  retailer  is  liable  to  realize  should  he 
be  fortunate  enough  to  sell,  but  the  amount  Mr.  Merchant 
would  have  to  pay  for  this  stock  should  he  purchase  it  in  its 

present  condition. 

138 


THE    INVENTORY 

What  Is  the  Merchandise  Worth?  Women's  wear,  suits, 
coats,  dresses,  milliner}'-,  and  the  like,  depreciate  50  per  cent, 
after  having  been  in  stock  one  full  season.  The  style  changes, 
of  course,  have  a  tendency  to  raise  or  lower  this  depreciation. 
Should  the  change  be  a  radical  one,  the  garment  would  not 
bring  over  15  to  20  per  cent,  of  original  selling  price.  (A 
$20  garment  marked  down  to  $4  should  be  inventoried  at  $2) . 
This  system  gives  opportunity  for  an  advantageous  showing 
of  profit  on  this  merchandise  the  following  year.  Men's 
clothing  depreciates  at  least  20  per  cent,  yearly.  Prints, 
ginghams,  percales,  domestics,  cotton  goods,  etc.,  if  in  good 
condition,  are  worth  what  they  would  cost  to  rebuy,  and  they 
should  be  inventoried  at  market  value;  sugar,  flour,  syrup, 
meats,  etc.,  should  also  be  treated  in  the  same  manner. 
Broken  and  soiled  merchandise  should  be  taken  low  enough 
so  that  a  profit  may  be  realized  on  inventory  when  the  mer- 
chandise is  sold. 

The  merchant  who  inventories  his  stock  of  merchandise 
according  to  the  above  suggestions  may  record  a  material 
loss  on  "closing  books"  the  first  year,  but  he  will  find  that 
his  next  inventory  will  show  a  substantial  profit  as  well  as 
his  true  financial  status.  The  method  enables  the  marking 
of  the  old  merchandise  at  a  price  where  it  must  sell  at  a  profit, 
and  it  positively  "rushes  off"  accumulating  stock  and  allows 
a  more  frequent  turn  of  stock. 

Preparing  for  the  Inventory.     The  method  of  preparing 

for  stock-taking  and  clearance  sales  seems  to  vary  with 

the  different  stores.    In  some  stores  stock-taking  comes  first 

and  clearance  sales  afterward,  while  in  others  the  stock  is 

cleaned  out  by  means  of  sales  before  the  inventory  is  taken. 

Most  merchants  regard  the  latter  method  as  the  wise  one. 

Under  such  a  policy,  prior  to  the  inventory  period,  all  stocks 

should  be  reduced  to  a  minimum.    The  buying  of  some  fine 

of  merchandise  (staples,  notions,  etc.),  is,  of  course,  essential 

139 


RETAIL    BUYING 

and  as  it  is  poor  business  policy  to  allow  every  department 
to  become  starved,  "  fill-ins  "  should  be  kept  up.  Care  should 
be  exercised,  however,  in  not  purchasing  more  than  is  ab- 
solutely necessary. 

Examples  of  Preliminary  Work.  Take  the  shoe  depart- 
ment as  an  example.  Within  a  reasonable  number  of  days 
before  the  end  of  the  store's  fiscal  year,  during  the  quieter 
moments,  the  clerks  begin  to  straighten  up  their  respective 
sections  of  the  stock.  They  carefully  examine,  assort,  and 
count  the  contents  of  each  carton,  drawer,  bin,  and  case. 
As  they  handle  each  lot  they  write  the  result  of  their  count, 
etc.,  in  pencil,  on  what  we  shall  here  term  a  "first-count 
slip."  They  place  one  such  slip  for  each  lot  in  the  respective 
shelf  or  drawer  with  the  counted  goods.  In  certain  stores 
the  shelf,  drawer  bin,  or  case  number  is  also  noted  on  the 
respective  slips. 

In  some  stores  these  slips  are  merely  strips  of  ordinary 
wrapping-paper,  cut  to  a  uniform  size.  In  other  stores  these 
slips  are  printed  blanks  providing  spaces  for  filling  in  various 
details,  as  quantity,  style  number,  selling  price,  cost  number, 
etc. 

Shift  the  Stocks  and  Examine  the  Goods.  The  stock 
should  be  shifted  at  stock-taking  time  to  ascertain  the  exact 
condition  of  the  merchandise;  to  run  over  it  as  it  hes  is  not 
sufficient  to  determine  this  point.  For  instance,  in  one  store 
during  inventory  period  the  men  were  counting  and  calling 
the  stock.  A  stock  of  trousers  on  the  top  shelf  was  being 
called,  and  the  proprietor,  who  was  passing  at  the  moment, 
suggested  that  they  be  taken  down  and  handled.  With  re- 
monstrances that  this  was  but  extra  labor,  it  was  done.  It 
was  found  that  where  the  edges  of  the  trousers  were  exposed 
they  were  streaked,  the  discoloration  being  caused  by  the 
dust  settling  on  them,  as  they  were  above  ordinary  reach 

and  escaped  the  daily  rounds  of  the  whisk-broom.    A  good 

140 


THE    INVENTORY 

brushing  saved  them,  but  had  they  remained  untouched  for 
a  few  weeks  longer  the  discoloration  would  have  been  per- 
manent. This  discovery  brought  about  a  change  in  the  ar- 
rangement of  the  stock  as  a  result  of  shifting  the  goods  during 
the  inventory. 

Examine  everything — every  item  m  tne  stock — for  two 
reasons:  To  learn  its  present  value — i.e.,  salableness,  and  to 
become  acquainted  again  with  the  stock  on  hand.  It  is  ap- 
parent that  every  article  in  the  house  should  bear  a  plain 
mark  for  the  purpose  of  avoiding  confusion  and  loss  of  time, 
as  well  as  the  time  it  is  offered  for  sale. 

Numbering  Done  in  Advance.  To  make  sure,  however, 
that  none  of  these  first-count  slips  get  lost,  each  is  consecu- 
tively numbered  in  advance.  Here  is  one  of  the  ways  in 
which  a  good  numbering-machine  can  save  time.  Besides, 
its  use  adds  "tone"  to  the  first-count  slips  and  enhances 
the  accuracy  of  the  numbering  work. 

These  consecutive  numbers  (on  the  first-count  slips)  of 
the  shoe  department  have  no  connection  with  the  similar 
numbers  put  on  first-count  slips  in  each  other  department 
in  the  store.  Each  department  head,  through  his  assistants 
or  heads  of  stock,  keeps  track  of  the  first-count  slips  he  has 
distributed  among  his  force,  so  he  can  hold  each  clerk  to  ac- 
count for  those  given. 

Changes  After  First  Count.     Inasmuch  as  the  counting, 

measuring,  etc.,  as  suggested,  begins  before  the  year's  real 

end,  it  happens  that  after  certain  lots  have  been  counted 

new  goods  of  that  kind  will  arrive.     More  frequently  it 

happens  that  some  of  the  counted  items  are  sold.     In  each 

of  such  instances  the  respective  first-count  slip  (lying  on  the 

shelf)  is  changed  accordingly.    And  if  a  clerk  who  wants  to 

make  such  a  correction  cannot  find  the  first-count  slip  which 

he  thinks  he  ought  to  find,  he,  of  course,  must  promptly 

report  the  matter  so  that  a  dummy  or  duplicate  slip  may  be 

141 


RETAIL    BUYING 

made  at  once.  By  sucn  means  much  of  the  wofk  connected 
with  inventorying  can  be  done  before  the  official  stock-taking 
date. 

Taking  Stock  While  Business  Goes  On.  The  old  methoa 
of  keeping  salespeople  and  those  who  have  charge  of  the  stock 
long  after  hours  straightening  out  inventories  and  listing 
goods  carried  on  shelves  has  given  way  to-day  to  a  new 
and  much  better  method  which  permits  the  taking  of  stock 
during  business  hours  and  while  the  department  is  busy 
selling.  This  system  may  vary  in  stores  a  trifle  in  minor  de- 
tails, but  on  the  whole  it  is  much  alike,  adapting  itself  to 
the  coat-and-suit  department  as  well  as  the  waist  or  shoe 
section,  or  elsewhere.  When  that  date  arrives  the  work 
proceeds  promptly  along  the  following  lines: 

Inventory.  The  first  consideration  is  to  determine  what 
plan  is  to  be  used  in  the  invoicing.  Is  the  stock  to  be  taken 
at  net  cost,  cost  and  carriage  (some  merchants  add  5  per 
cent,  to  cover  freight  and  express),  or  at  retail  price,  pref- 
erably the  first  price  at  which  goods  are  marked  before 
mark-downs  begin?  Some  of  the  larger  stores  have  adopted 
a  method  of  inventorying  at  selling  price  only,  while  others 
are  following  the  plan  of  inventorying  at  both  cost  and  selling 
prices.  The  medium-sized  and  smaller  stores  have  been  ad- 
hering to  the  plan  of  inventorj^ing  at  original  cost  or  market 
value  (cost).  The  advantage  to  be  gained  by  taking  an 
inventory  at  cost  and  selling  prices  is  readily  seen.  The  dif- 
ference between  the  per  cent,  of  profit  marked  on  the  mer- 
chandise, or  shown  by  the  inventory  sheet,  and  the  per  cent, 
of  profit  realized  from  the  operation  of  the  various  depart- 
ments, will,  in  some  instances,  be  verj^  great. 

Having  decided  on  the  basis  of  figures  at  which  the  goods 

are  to  be  listed,  next  provide  books  ruled  with  a  sufficient 

number  of  columns  to  accommodate  the  various  head-lines 

under  which  to  enter  the  stock,  such  as:    lot  number,  kind 

142 


THE    INVENTORY 

of  merchandise,  sizes,  price,  or  any  other  important  feature 
of  record  to  be  kept. 

Some  concerns  make  use  of  the  loose-leaf  sheets,  given  here- 
with, for  official  inventory,  having  these  sheets  bound  in  covers 


Date 


SMITH,  JONES  &  COMPANY 

Sheet  No. 

191  Department  A 


Stock  No. 


Description 


Quantity 


Price 


contammg  a  half-dozen  or  a  dozen  pages.    Numbers  of  small 

books  are  absolutely  essential  in  stores  where  six,  eight,  or 

more  people  are  employed  in  taking  the  inventory,  because 

a  greater  number  of  clerks  can  be  put  to  work  simultaneously 

than  when  the  proprietor,  working  both  night  and  day,  did 

143 


RETAIL   BUYING 

tho  recording  in  the  one  book.  And  this  is  true,  of  course, 
not  only  regarding  the  preliminary  work  of  entering  on  the 
sheets  while  the  calling-off  is  being  done,  but  also  regarding 
the  later  work  of  figuring  and  rcfiguring  the  items. 

A  competent  person  goes  through  the  shelves,  drawers, 
cases,  etc.,  and,  taking  up  one  count  after  another,  calls  off 
from  these  to  another  assistant  who  enters  the  respective 
items  on  the  inventory  sheets.  By  having  the  small  wares 
counted,  with  slips  of  paper  bearing  the  quantities  placed 
on  top  of  the  lots,  either  in  boxes  or  open  stock,  much  time 
will  be  saved  in  the  calling.  The  longer  the  work  is  drawn 
out  the  harder  and  more  irksome  it  becomes.  A  $20,000 
stock  should  be  called  in  a  few  hours  when  a  proper  first 
count  has  been  prepared  beforehand. 

Have  Numerous  Subdivisions.  Just  as  it  is  beneficial 
to  keep  each  department's  goods  separate  in  the  inventory 
instead  of  jumbling  together,  so  it  is  desirable  to  cut  up  each 
individual  department's  inventory  into  as  many  parts  as  is 
practicable.  In  inventorying  a  shoe  department's  stock  the 
stock-sheets  might  be  subdivided  into  ten  different  sections, 
as  follows:  1.  Women's  high  shoes.  2.  Women's  low  shoes. 
3.  Men's  high  shoes.  4.  Men's  low  shoes.  5.  Women's 
slippers.  6.  Men's  slippers.  7.  Misses'  and  children's  shoes. 
8.  Boys'  and  youths'  shoes.  9.  Rubbers  and  rubber  boots. 
10.  Findings.  Moreover,  the  subdivision  can  go  still  further 
so  as  to  segregate  (within  each  of  the  ten  subdivision's 
names)  certain  styles  or  colors  or  leathers,  etc. 

All  Sheets  Are  Carefully  Followed  Up.  Just  as  the  first- 
count  slips  are  consecutively  numbered  (in  advance),  so,  too, 
are  the  official  inventory  books  or  loose  leaves.  Thus  every- 
body handling  them  can  be  debited  with  the  "numbers" 
intrusted  to  him  or  her,  and  credited  for  them  when  be  or 
she  returns  them  to  the  proper  authorities. 

A  still  further  advantage  of  using  thin  books  or  loose 

144 


THE    INVENTORY 

leaves  is  due  to  the  fact  that  when  each  individual  clerk 
holds  at  one  time  the  figures  of  but  a  small  fragment  of  the 
stock,  he  or  she  thus  gets  but  little  knowledge  of  the  depart- 
ment's total.  Under  other  conditions,  the  one  handhng  the 
books  may  get  a  pretty  fair  idea  as  to  the  stock's  total  in- 
ventory and  other  confidential  data  on  the  operation  of  the 
business. 

Page  Totals  Not  Carried  Forward.  Another  point  to  be 
mentioned  is  that,  whatever  system  may  be  employed,  each 
page  or  sheet  is  footed  independently.  That  is  to  say,  page- 
totals  or  sheet-totals  are  not  carried  forward  in  the  ordinary 
way.  This  plan  of  keeping  each  page-total  or  sheet-total 
separate — provided  the  recapitulating  work  is  properly  done 
— simplifies  and  expedites  matters  in  various  ways. 

By  such  means,  with  much  less  trouble  than  might  be 
imagined,  even  the  bigger  stores  gather  in  a  few  days  a 
mass  of  information  regarding  their  stocks  on  hand  that 
proves  of  great  value  to  all  concerned. 

Annual,  Semiannual,  or  Monthly  Inventory.  Many 
merchants  are  doing  apparently  good  business,  but  still  they 
are  losing  money  yearly,  without  a  definite  knowledge  as  to 
how  or  where  the  money  is  lost.  For  instance,  a  Western 
millinery  store  was  doing  a  fair  volume  of  business.  The 
owner  conceived  the  idea  of  doing  a  tremendous  Easter 
business  by  making  leaders  of  trimmed  hats  at  $1.98,  $2,98, 
$3.98,  and  $4.98,  taking  for  granted  that  these  popular  prices 
would  cause  higher-priced  hats  and  pressed  shapes  (the 
articles  upon  which  the  larger  percentage  of  profit  was  made) 
to  sell.  He  also  advertised  a  free  trimming  service  in  case 
flowers,  feathers,  or  ornaments  were  sold.  The  sales  force 
was  not  informed  as  to  what  merchandise  was  the  profit- 
maker.  Consequently  they  pushed  the  articles  (the  trimmed 
hats  at  $1.98,  $2.98,  $3.98,  and  $4.98,  upon  which  practically 

no  profit  was  made)  because  they  were  the  easier  to  sell.  The 
10  "  145 


RETAIL   BUYING 


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146 


THE    INVENTORY 

sales  were  increased  50  per  cent.,  but  at  inventory  time 
the  records  showed  no  profit  made  during  the  year.  The 
merchant  decided  to  locate  the  season  in  which  the  loss 
occurred  by  inventorying  the  stock  each  quarter.  This 
was  done,  and  it  was  found  that  during  the  Easter  sea- 
son enough  loss  occurred  to  eat  up  the  profits  for  the  re- 
maining seasons. 

There  are,  of  course,  some  few  drawbacks  to  frequent  in- 
ventorying. Many  merchants  complain  of  finding  invoicing 
once  per  year  rather  difficult  because  of  the  lack  of  interest 
on  the  part  of  the  salespeople,  and  lack  of  time  on  account 
of  business  during  regular  hours.  It  will  be  readily  conceded 
that  most  salespeople  dread  inventory  work;  but  after  making 
a  start  they  find  it  much  easier  than  they  had  anticipated. 
Frequent  inventorying  causes  them  to  lose  this  dread  and 
to  become  more  accurate. 

Continuous  Inventory.  Because  of  limited  capital,  de- 
mand for  frequent  turnovers,  and  necessity  of  detail  knowl- 
edge with  regard  to  stocks,  several  so-called  continuous  or 
perpetual  inventory  systems  have  been  perfected.  These 
are,  moreover,  very  applicable  to  certain  kinds  of  merchan- 
dise. Ladies'  ready-to-wear,  men's  clothing,  stoves,  shoes, 
and  hats  are  the  best  suited  commodities  for  this  type  of 
inventory,  while  groceries,  notions,  small  wares,  etc.,  would 
require  much  clerical  work,  if  each  sales-slip  were  to  be 
checked  and  marked  ofi'  of  stock-sheets.  Continuous  in- 
ventory showing  quantity,  however,  is  not  essential  for 
the  latter  lines. 

Keeping  up  a  continuous  inventory  is  greatly  facilitated 
by  using  the  correct  form  of  inventory  sheet,  together  with 
the  proper  means  of  keeping  a  systematic  check.  Fig.  2, 
used  in  connection  with  Fig.  3  (stock-tag)  is  used  by  a  pro- 
gressive Western  store  for  continuous  inventory  in  the 
women's-wear  department.    Columns  are  provided  for  gar- 

147 


RETAIL    BUYING 


THE  KEPLER  CO. 

DRY  GOODS 

EAU  CLAIRE,    -     WISCONSIN 


ment,  style  number,  cloth,  color,  cost,  selling  price,  reduced 
selling  price  (this  to  be  entered  from  stub,  Fig.  3,  at  the  time 
of  the  reduction),  sizes,  and  description. 

Each  manufacturer  from  whom  merchandise  is  received 
has  a  page  or  pages  (stock-sheets);    he  is  also  given  a  lot 

number,  and  this  number 
is  recorded  on  the  stock- 
sheets  as  well  as  on  the 
merchandise  -  tags.  Be- 
cause of  the  possibility 
of  several  manufacturers 
having  the  same  garment 
number,  and  in  order 
that  garments  may  be 
more  readily  located,  this 
precaution  is  used.  The 
stock-sheets  can  best 
be  kept  in  a  loose-leaf 
binder,  as  this  plan  elimi- 
nates any  possibility  of 
any  pages  becoming  mis- 
placed, and  new  pages 
may  be  inserted  wherever 
necessary. 

When  this  merchan- 
dise is  sold,  the  sales- 
person tears  or  breaks 
off  the  lower  half  of  the 
perforated  tag  and  places 
it  in  a  box  which  is  kept  conveniently  located  for  the  purpose. 
Each  morning  or  evening,  as  the  case  may  be,  this  box  is 
emptied,  and  the  stub-tickets  are  checked  against  the  clerk's 
sales-tickets  to  make  sure  that  the  merchandise  was  actually 

sold  for  marked  price.    The  stub-ticket  is  then  entered  as 

148 


No. 
Lot  "' 
Size 
Pric^ 
Nor* 

Size 
Color 
X^ice 


>3A 

...>.'^..: 

A.!^ 


..*:^x\. 


-J5 


^^Z 


Fig.  3 


THE   INVENTORY 

sold  on  the  stock-sheet  by  writing  date  of  sale  above  size 
garment,  as,  coat  No.  131,  Fig.  2, 

Reduction  in  price  should  be  entered  both  on  stock-sheet 
and  merchandise-tag  at  the  time  of  the  change  in  price. 
This  avoids  any  possibility  of  price  changes  on  the  mer- 
chandise-tag without  detection  when  entering  the  date  of 
sale. 

When  used  correctly,  an  actual  inventory  total,  both  in 
dollars  and  cents  and  number  of  garments,  may  be  had  on 
a  few  moments'  notice.  This  system  also  shows  what  "fill- 
ins"  should  be  purchased,  as  well  as  showing  the  merchant 
what  lines  sell  more  readily  and  which  are  "stickers." 

Fig.  4  shows  form  of  sheet  used  for  continuous  inventory 
by  a  successful  bargain-basement  manager.  The  sheet  has 
columns  for  basement  number,  description  of  article,  manu- 
facturer's stock  number,  cost  price,  selling  price,  quantity, 
and  blank  margin  for  entering  sales. 

All  merchandise  is  given  a  basement  number  on  receipt 
and  entered  in  the  back.  The  manufacturer's  stock  number 
is  also  entered,  in  order  that  the  article  may  be  reordered, 
should  it  be  necessary.  Cost  price,  selling  price,  and  quality 
are  entered  as  well.  Each  commodity  is  tagged  with  base- 
ment number  and  selling  price,  other  information  being 
available  by  looking  up  basement  number  on  stock-sheet 
in  stock-book. 

When  selling  the  commodity  the  salesperson  enters  the 
basement  number  and  selling  price  on  the  sales-slip.  These 
accumulated  sales-slips  are  collected  each  morning  by  the 
person  in  charge  of  marking  merchandise,  and  entered  on  the 
stock-sheet  with  red  ink. 

Much  work  is  required  in  using  this  system,  as  each  sales- 
ticket  must,  necessarily,  be  checked  from  the  book,  and 
this  work  cannot  be  postponed  from  time  to  time,  because 

the  system  is  worthless  unless  kept  up  to  date. 

149 


RETAIL    BUYING 

MARSHALL   FIELD   &   CO. 


10/1/14 


Basement 

Description 

Stock 

C 

S.P. 

Quantity 

1850 

Books 

309 

.07 

.10 

12— 

1851 

Blocks 

5537 

.15 

.25 

1— 

1852 

Chairs 

1289 

.19 

.30 

4— 

1853 

u 

1288 

.21 

.39 

4— 

2 

1854 

Beds 

1425 

.39 

.59 

2— 

1855 

u 

1553 

.56 

.98 

2— 

1856 

tl 

647 

.45 

.85 

8— 

1857 

Furniture 

5148 

1.05 

2.00 

4— 

1 

1. 

1858 

a 

5107 

.77 

1.50 

4— 

1859 

li 

M5121 

2.08 

3.95 

1— 

1860 

a 

5140 

2.75 

4.95 

1— 

1861 

Desks 

1293 

1.63 

2.95 

1— 

1 

1862 

<( 

0409 

1.10 

1.95 

2— 

1 

1863 

a 

1229 

2.08 

3.95 

2— 

2 

1864 

Horse-stick 

1524 

.17 

.25 

12— 

1865 

Doll-cabs 

1363 

.45 

.79 

1— 

1866 

u 

1377 

1.00 

1.95 

1— 

1 

1867 

(1 

1369 

1.37 

2.60 

3— 

2 

1868 

<( 

1432 

1.40 

2.75 

2— 

1869 

" 

1435 

2.75 

4.50 

2— 

2 

1870 

II 

1442 

3.25 

5.50 

1— 

Fig.  4 
150 


THE    INVENTORY 


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151 


RETAIL    BUYING 

Perpetual  Inventory  System  Used  by  a  Specialty  Shop. 
Fig.  No.  5  shows  stock-sheet  used  by  a  successful  specialty- 
store  company  in  keeping  accurate  account,  in  dollars  and 
cents,  on  merchandise  on  hand.  Merchandise  is  checked 
and  marked  from  invoice  on  receipt,  and  the  sale  price 
extension  is  filled  in  at  the  same  time.  Pencil  figures 
should  be  avoided,  as  there  is  great  danger,  when  making 
payment,  of  paying  retail  extension  instead  of  cost  amount. 
Red  ink  is  preferable,  because  manufacturers,  brokers,  com- 
mission-houses, and  jobbers  never  use  colored  inks  in  render- 
ing statements.  The  percentage  of  mark-up  should  be  figured 
and  recorded  in  the  lower  left-hand  corner;  necessary  in- 
formation on  bill  should  be  recorded  on  stock-sheet  (Fig. 
5),  as  invoice  has  been  recorded.  Each  invoice  is  con- 
secutively numbered,  treated  as  Fig.  5,  and  entered.  All 
columns  are  kept  totaled — i.e.,  the  amount  of  each  invoice, 
the  amount  of  selling-price  mark-up,  and  percentage  of 
mark-up  is  added  to  those  already  reserved  during  the  year. 
This  total  of  cost  price,  plus  the  inventory,  gives  the  cost 
of  merchandise  on  hand,  while  the  total  of  selling  amount, 
plus  retail  inventory,  gives  the  sale  price  of  merchandise  on 
hand.  The  sales  are  deducted  from  total  retail  sale  price,  as 
follows : 

Cost  Retail 

Inventory,  June  1 S40,000 .  00  $60,000 .  00 

Purchases  since  received.  948.20  1,274.36 

Total $40,948 .  20  $61,274 .  36 

Sales  since  June  1 2,250 .  00 

Total $59,024.36 

Let  one  hundred  equal  cost  price,  as  cost  is  the  unknown 
quantity.  One  hundred  plus  28.56  per  cent.,  which  was  the 
average  per  cent,  of  mark-up  on  all  merchandise  received,  as 

152 


THE    INVENTORY 

well  as  inventory,  equals  128.56.  Two  thousand,  two  hun- 
dred and  fifty  dollars,  the  sale  price  of  merchandise  sold, 
divided  by  128.56  equals  $1,750.16,  the  cost  price  of 
merchandise  sold. 

$2,250.00-;- 128. 56 =$1,750. 16,  cost  of  merchandise  sold. 
Totals .  .  .  $40,948 .  20  cost  $61,274 .  36 

1,750.16  2,250.00 


$39,198 .  04,  cost  of  $59,024 .  36,  sale  price  on 

merchandise  on  hand.  merchandise  on  hand. 

This  plan  may  be  used  with  each  day's  sales,  and  an  ac- 
curate knowledge  of  merchandise  on  hand,  both  cost  and 
sale  price,  may  be  known  at  all  times. 


XII 


STOCK-KEEPING   AND   STOCK-RECORDING 

Stock-keeping.  Although  in  one  of  the  best  locations  in 
one  of  the  most  flourishing  towns  of  southern  Wisconsin,  a 
dry-goods  merchant  is  allowing  his  business  to  slip  away  from 
him.  In  the  first  place  he  does  not  give  the  proper  time  and 
attention  to  the  business  because,  as  he  confesses,  he  does 
not  get  enough  out  of  it  to  pay  him.  A  customer  entering 
the  store  is  greeted  with  the  same  arrangement  and  display 
she  has  been  seeing  every  time  she  has  entered  the  store 
in  fifteen  years.  The  various  stocks  are  located  in  the  same 
positions.  The  piece-goods  department  presents  a  most  un- 
sightly appearance.  Discolored,  faded,  and  unevenly  rolled 
bolts  are  heaped  on  the  shelving;  soiled  and  broken  boxes 
are  protruding  from  the  notion  counter;  linens  and  fancy- 
work  pieces  are  piled  on  the  inside  of  the  cases;  boxes  of  all 
sizes,  colors,  and  shapes  are  mixed  together  in  the  hosiery 
department;  piles  of  merchandise,  which  should  be  attrac- 
tively displayed  in  cases  and  packed  away  in  stock-boxes, 
are  stacked  on  the  counters  and  cases.  The  place  has  well 
earned  the  name  of  "The  Junk-shop." 

This  merchant  has  been  greeted  with  the  sight  for  such  a 

length  of  time  that  he  becomes  accustomed  to  it.    He  does 

not  take  into  consideration  that  his  customers  judge  the 

merchandise  by  the  way  it  is  kept.     If  he  should  take  a 

short  vacation  and  spend  part  of  it  in  an  up-to-date  store, 

154 


STOCK-KEEPING    AND    STOCK-RECORDING 

he  would  return  to  the  store  sufficiently  disgusted  to  pitch 
in  and  reorganize  it.  The  first  job  would  be  to  show  the 
clerks  how  to  keep  stock  in  the  correct  way. 

An  orderly,  well-kept  stock  is  one  of  the  best  advertise- 
ments that  a  merchant  can  have.  It  insures  that  the  mer- 
chandise is  kept  in  correct  condition;  as  a  result  the  customer 
is  better  satisfied,  sales  are  made  easier,  the  losses  through 
depreciation  are  less,  merchandise  can  be  more  easily  located, 
and  a  greater  sales  volume  may  be  had  at  the  least  investment. 

Store  Fixtures.  The  question  of  fixtures  is  a  very  im- 
portant one,  and  one  which  meets  with  much  discussion  and 
disagreement.  The  leading  merchants  and  trade  publica- 
tions all  over  the  United  States  have  given  their  ideas  on 
the  subject.    Still,  no  definite  conclusion  may  be  drawn. 

In  any  discussion  of  the  subject  it  is  well  to  bear  in  mind 
the  type  of  store,  the  class  of  clientele,  the  character  of  the 
merchandise  handled,  and  the  amount  of  space  to  be  used. 
Each  particular  type  of  business  calls  for  different  equipment, 
and  the  brains  of  the  proprietor  must  be  used  to  decide  just 
what  is  necessary. 

Numerous  merchants  in  all  kinds  of  business  advocate 
that  there  should  be  no  such  an  account  as  the  fixture  account. 
The  ready-to-wear  merchant  of  this  class  makes  use  of  the 
common  gas-pipe  fixture  because  he  believes  that  by  so 
doing  he  can  save  money  and  sell  the  commodity  to  the 
public  for  less  money.  Glass  cases  arc  useless  to  him  be- 
cause his  merchandise  is  not  on  the  hangers  long  enough  to 
become  dusty,  while  the  glass  cases  would  require  much 
time  and  labor  to  keep  clean,  and  they  would  not  be  as  ac- 
cessible to  the  prospective  customer. 

Are  Expensive  Fixtures  Necessary?     The  clothier  of  this 

class  says  a  man  goes  into  the  clothing-store  to  see  clothing, 

not  glass  fixtures.    He  is  much  better  pleased  when  he  can 

see  the  piles  of  clothing  about  him  on  tables  and  he  is  en- 

155 


RETAIL   BUYING 

abled  to  handle  it.  The  forties  are  kept  together  on  tables, 
and,  should  this  be  the  size  desired,  one  coat  after  another 
may  be  tried  on,  and  in  less  time  than  is  required  to  remove 
the  hangers  from  the  coats. 

Many  grocers  claim  that  as  there  is  so  little  profit  in  their 
goods  they  cannot  afford  to  invest  much  in  fixtures.  Many 
customers  do  not  enter  the  store,  as  they  order  by  telephone. 
In  fact,  it  is  quite  possible  to  keep  a  small  grocery-store  clean 
and  neat  without  the  aid  of  expensive  fixtures. 

The  Selling  Value  of  Attractive  Fixtures.  On  the  other 
hand,  how  much  business  could  Marshall  Field  &  Company 
do  without  the  aid  of  their  up-to-date  fixtures?  Their 
fixtures  add  much  prestige  to  the  merchandise  which  they 
carry.  Nine-tenths  of  their  customers  would  turn  up  their 
noses  and  walk  out  of  the  store  were  they  forced  to  walk 
over  uncarpeted  floors  and  make  their  selections  from  stocks 
of  merchandise  kept  in  cheap  or  antiquated  fixtures.  There 
are  certain  classes  of  people  who  are  willing  to  pay  for  the 
environment,  and  the  merchant  is  expected  to  make  the 
surroundings  suitable  to  the  tastes  of  the  most  fastidious. 

The  same  is  true  of  representative  stores  in  New  York 
City,  Boston,  Philadelphia,  Chicago,  Buffalo,  and  other 
centers  where  the  clientele  is  made  up  of  the  upper  classes 
of  the  city.  Each  store  tries  to  outdo  the  other  in  the  matter 
of  furnishings  and  equipment.  The  customers  who  frequent 
such  stores  have  beautiful  homes  and  they  are  accustomed 
to  such  fittings.  The  stores'  ofl&cials  have  learned  that  it 
is  absolutely  necessary  to  fit  the  stores  in  such  a  manner  as 
to  make  the  customer  feel  at  home.  The  stores  would  be 
flat  failures  were  they  to  attempt  to  merchandize  in  any 
other  way. 

Fixtures  Should  Be  Adapted  to  the  Trade.     In  these 

same  cities,  however,  there  are  other  stores  doing  equally 

as  much  business  as  the  high-grade  store  previously  referred 

156 


STOCK-KEEPING   AND    STOCK-RECORDING 

to,  with  much  less  money  mvested  in  equipment  and  fixt- 
ures. Their  customers  do  not  demand  it;  in  fact,  their 
customers  are  many  who  are  unaccustomed  to  extrava- 
gantly furnished  surroundings,  and  they  purchase  more  freely 
when  fitted  properly.  An  actual  happening,  which  will 
help  emphasize  this  idea,  may  be  cited:  A  lumberman, 
after  making  a  great  deal  of  money  in  a  certain  section  in 
the  northwestern  part  of  Wisconsin,  decided  to  expend 
some  of  this  money  by  fitting  up  one  of  the  best  and  most 
up-to-date  stores  for  its  size  in  the  United  States.  A  costly 
building  was  fitted  up  with  expensive  furniture  and  fixtures, 
heavy  carpets  were  put  on  the  floors,  and  everything  to  har- 
monize was  put  in  place.  Complete  stocks  of  merchandise 
were  purchased  and  installed.  The  store  would  have  done 
justice  to  Michigan  Avenue,  and  a  visitor  might  have  thought 
that  the  store  expected  to  derive  its  trade  from  the  residents 
of  Lake  Shore  Drive.  The  only  patrons,  however,  were  to 
be  the  farmers  and  lumberjacks  of  the  surrounding  territory. 
The  place  was  too  fine  for  them,  and  the  store  did  little  busi- 
ness. The  prospective  customers  would  come  to  the  front 
door,  look  at  the  carpet,  then  at  their  feet,  and  walk  away 
with  their  eggs  to  some  general  store  where  they  could  sit 
on  a  box  and  expectorate  on  the  floor  while  the  merchant 
exchanged  their  eggs  for  groceries. 

Another  example  of  fitting  up  too  fine  a  store  for  the  trade 
happened  in  a  much  larger  town.  A  store,  in  a  city  of  six 
thousand,  prospered  and  thrived  by  catering  to  mill-hands, 
machinists,  laborers,  and  the  like.  It  was  decided,  as  busi- 
ness was  so  good,  that  a  much  larger  patronage  could  be  had 
were  the  store  large  enough  and  well-fitted  enough  to  handle 
it.  All  the  latest  fixtures  were  installed,  a  modern  front  was 
put  in,  and  everything  was  made  convenient  and  inviting. 
The  business  failed  to  come,  and  the  old  trade  began  to  drop 

away  because  the  fittings  and  furnishings  proved  too  elabo- 

157 


RETAIL   BUYING 

rate.  The  store  went  into  the  hands  of  the  receivers  in  less 
than  two  years  after  the  alterations  were  made. 

Fixtures  for  the  Up-stairs  Store.  Any  merchandizer  or 
careful  observer  of  merchandizing  principles  readily  admits 
that  the  up-stairs  store  does  not  hold  its  trade  through  the 
use  of  expensive  fixtures.  The  kind  of  merchandise  handled 
does  not  necessitate  the  use  of  elaborate  fittings.  The  ad- 
vertisements usually  read:  "Walk  Up  and  Save  Five  Dol- 
lars." The  values  given  for  the  money  are  what  cause  the 
customers  to  walk  out  of  their  way.  They  save  a  few  dollars 
by  walking,  and  they  do  not  expect  to  be  greeted  with  an 
elaborate  display  of  equipment.  Economy  in  equipment 
enables  this  saving  to  the  customer,  and  most  of  them  are 
aware  of  this  fact. 

It  is  a  well-known  fact  that  the  higher-class  and  higher- 
priced  garments  are  not  carried  in  stores  of  this  type.  Com- 
modities are  carried  in  stock  that  will  meet  the  requirements 
of  the  type  of  customer  who  is  anxious  to  economize  in  her 
dress.  High-price  merchandise  is  usually  carried  in  stores 
where  the  wealthy  customer  is  catered  to.  Therefore  we  may 
well  say  the  type  of  store,  the  class  of  clientele,  and  the 
character  of  store  go  hand  in  hand. 

There  are  times  in  every  man's  business  when  improve- 
ments must  be  made.  It  sometimes  happens  that  making  im- 
provements will  reduce  some  expense  sufficiently  to  cover  the 
amount  expended.  Every  one  knows  the  customer  likes  to  do 
her  purchasing  in  the  thriving  store.  In  other  words,  she 
likes  to  go  where  the  bulk  of  the  people  go.  Improvements 
frequently  herald  to  the  trade  your  store  is  doing  a  flourishing 
and  a  profitable  business,  and  it,  in  turn,  begins  flocking 
to  the  most  thrifty  store.  Fixtures,  if  they  are  suitable  to 
the  type  business,  sometimes  reduce  the  cost  of  carrying 
the  stocks.  This  may  cause  more  sales,  and  there  is  a  chance 
pf  the  customer  deriving  a  benefit  through  the  expenditure, 

158 


STOCK-KEEPING    AND    STOCK-RECORDING 

No-Coimter  Idea.  Some  merchants,  for  instance,  believe 
it  impossible  to  do  business  without  the  aid  of  the  counters, 
while  others  have  long  since  given  up  the  use  of  counters 
in  many  departments.  John  Wanamaker,  the  first  to  try 
out  the  method,  has  done  a  tremendous  piece-goods  business 
by  making  use  of  show-tables  instead  of  counters.  This 
same  principle  has  been  worked  out  advantageously  in  the 
store  of  the  writer.  It  was  found  that  the  customers  actually 
gave  more  time  to  the  looking  than  previously.  INIany,  in 
fact,  passing  down  the  aisle,  with  no  definite  purpose  in 
mind,  stopped  to  look  at  piece  goods  cleverly  displayed  on 
the  tables,  when  they  would  hesitate  about  stopping  before  a 
counter  because  of  the  seeming  obligation  to  buy.  Courteous 
salespeople,  taking  advantage  of  the  situation,  begin  showing 
other  merchandise,  and  before  the  customer  realizes  it  a 
desire  is  created  for  the  commodity  and  a  sale  is  perfected. 

In  making  use  of  the  table  plan  it  is  necessary  to  reserve 
every  third  table  for  a  measuring-table.  Certain  kinds  of 
merchandise,  not  display,  may  be  shown  on  these  tables. 
But  care  must  be  had  to  see  that  these  tables  are  always 
kept  clear,  so  that  thej^  may  be  had  for  their  original  purpose 
whenever  they  are  needed. 

Six-foot  tables  are  the  most  adaptable  for  the  purpose. 
They  should  be  placed  some  three  feet  apart  so  as  to  allow 
space  for  the  prospective  customer  to  walk  between  the  tables 
if  necessary.  These  tables  should  be  covered  each  morning 
with  newly  received  merchandise  cleverly  displayed. 

This  same  idea  has  been  tried  and  found  to  be  successful 

in  many  kinds  of  business.     Bargain-basement   managers 

have  found  that  it  is  impossible  to  do  without  the  table 

system,  because  their  merchandise  must  be  displayed  in 

order  to  make  ready  sales.    The  merchandise  is  put  out  so 

that  the  public  may  wander  through  the  aisles,  examining 

everjrthing  and  make  their  own  selection.      Grocers  have 

159 


RETAIL   BUYING 

found  that  certain  kinds  of  goods  carried  in  their  stocks  find 
more  ready  sale  when  put  out  so  that  the  customers  may  find 
new  things.  This  plan,  of  course,  would  be  an  impossibility 
where  the  commodity  shown  could  be  sampled  by  the  public. 
Chain  stores  make  a  remarkable  example  of  what  can  be 
done  by  putting  the  merchandise  into  the  hands  of  the  public. 
It  would  be  impossible  for  them  to  sell  one-third  the  mer- 
chandise were  it  necessary  to  carry  it  on  shelves  and  show 
it  as  the  ordinary  hardware  merchant  shows  his  wares.  One 
of  the  largest  drug-stores  in  New  York  City,  one  of  the 
Liggett  chain  at  Thirty-fourth  Street  and  Broadway,  makes 
use  of  the  same  plan  in  the  sale  of  its  package  candies,  toilet 
articles,  rubber  goods,  and  novelties.  Brentano's  Fifth 
Avenue  Book  Store  would  not  be  able  to  sell  anything  like 
the  number  of  books  it  sells  annually  were  the  customers 
not  permitted  to  walk  through  undisturbed  at  will.  They 
frequently  enter  out  of  curiosity,  and,  in  wandering  around, 
find  several  or  more  books  that  they  purchase  before  leaving. 

Lace-curtain  and  drapery  departments  are  doing  away 
with  their  counters,  as  they  are  beginning  to  realize  that 
fifty-dollar  curtains  are  never  sold  unless  they  are  displayed. 
Even  expensive  cretonnes  and  denims  are  being  shown  on 
tables  and  well  displayed,  so  that  the  customers  may  see  at 
a  glance  what  is  in  vogue. 

Without  a  doubt,  people  purchase  more  freely  if  al- 
lowed to  handle  merchandise,  as  they  are  enabled  to  have 
a  greater  selection  in  a  shorter  time.  Tables  are  also  in- 
surance against  lazy  salespeople  failing  to  show  enough  mer- 
chandise. 

Store  Arrangement.  The  location  of  a  department  has 
much  to  do  with  its  success  or  failure.  Departments  may 
be  so  arranged  as  to  make  individual  stock-keeping  and 
stock-work  most  effective.  In  fact,  store  arrangement  is  a 
science  which  is  acquired  through  a  study  of  the  individual 

160 


STOCK-KEEPING   AND    STOCK-RECORDING 

store,  the  clientele,  the  salespeople,  and  the  merchandise. 
Each  department  must  be  located  where  it  will  have  the 
greatest  pulling  powers  and  where  it  can  do  the  most 
profitable  business. 

A  large  city  department  store  featured  a  men's-wear  de- 
partment for  many  years.  The  department  began  to  decline. 
The  men  who  as  boys  had  purchased  all  their  wearables  of 
the  store  began  hunting  up  the  specialty  shops.  The  truth  of 
the  matter  was  that  men  preferred  to  make  their  purchases 
where  they  would  not  come  in  contact  with  women  cus- 
tomers. The  store  soon  saw  fit  to  establish  a  separate  store 
in  which  men  could  shop  in  comfort.  Other  department 
stores  have  found  that  it  paid  them  to  have  their  men's-wear 
department  situated  just  inside  the  door  or  on  one  side  of 
the  store.  Men  prefer  to  shop  where  they  can  step  inside 
of  the  door,  make  their  purchases,  and  get  out.  As  a  rule, 
they  do  not  require  much  time  to  make  their  selections, 
and  they  do  it  while  on  their  way  to  work,  during  lunch- 
hour,  or  on  their  way  home  in  the  evenings. 

Staples  and  free-selling  merchandise  are  usually  kept  in 
the  rear  of  the  store,  in  the  basement,  or  in  some  other  part 
of  the  store  where  the  customer  must  pass  through  the  main 
aisles  in  order  to  reach  that  department.  During  the  latter 
part  of  March,  1916,  the  store  of  the  writer  purchased  a  bank- 
rupt stock  of  merchandise.  There  was  a  fair-sized  grocery 
stock  in  the  purchase.  It  was  decided  to  use  this  as  a  real 
leader.  In  order  to  pull  the  people  through  the  store,  this 
stock  was  placed  at  the  rear  end  of  the  second  floor,  so  that 
customers  who  wished  to  reach  this  department  would 
necessarily  have  to  pass  through  the  aisles  of  the  down- 
stairs, and  through  the  entire  up-stairs,  before  reaching  the 
wanted  stock  to  make  their  purchases.  In  passing  through 
the  store  the  people  saw  whatever  else  was  being  displayed, 

and  many  purchases  resulted.    The  entire  grocery  stock  was 
n  161 


RETAIL    BUYING 

cleaned  out  in  less  than  a  week,  together  with  most  of  the 
other  stocks. 

This  plan  should  be  worked  in  each  individual  stock.  The 
customer  should  be  forced  to  pass  well-displayed  merchandise 
in  order  to  reach  the  free-selling  commodities,  and  at  the 
same  time  attempts  should  be  made  to  place  each  line  of 
merchandise  so  that  it  will  be  most  conveniently  situated 
for  the  prospective  customer.  The  old  adage,  "Cheaper 
goods  to  the  front,"  is  a  thing  of  the  past.  There  was  a 
time  when  this  idea,  when  worked  effectively,  was  a  great 
puller.  But  now,  before  making  contemplated  moves,  it  is 
necessary  that  some  study  be  made  of  the  public  with  rela- 
tion to  this  particular  department  and  to  competitive  de- 
partments. 

Receiving-room.  The  average  customer,  as  well  as  sales- 
person, has  a  weakness  to  see  what  is  in  new  packages  or 
boxes.  Many  times  some  buyer  will  be  striving  to  mark  a 
bill  of  goods  while  a  number  of  customers  are  busy  going 
through  the  various  packages,  mixing  up  all  kinds  of  things, 
so  that  it  is  impossible  for  the  buyer,  because  of  fear  of 
offending,  to  remonstrate.  Frequently  articles  are  lost, 
numbers  and  labels  misplaced,  and  much  confusion  results 
in  attempting  to  make  the  statement  tally  with  the  mer- 
chandise received.  This  trouble  and  worry  could  easily  be 
eliminated  by  having  a  regular  room  or  compartment  set 
aside  for  the  purpose,  not  accessible  to  the  customer.  All 
incoming  goods  should  be  sent  to  this  department  for  open- 
ing, marking,  and  recording.  Many  stores  have  such  a 
department  in  the  rear  of  the  store,  conveniently  located  for 
the  expressman;  it  may  also  be  used  as  a  packing-room  for 
outgoing  parcels.  Everytliing  is  tagged,  labeled,  pin- 
ticketed,  etc.,  before  leaving  for  the  stock-room  or  the  regu- 
lar selling  department. 

Reserve  Stock.     In  larger  stores,  where  it  is  an  absolute 

162 


STOCK-KEEPING    AND    STOCK-RECORDING 

necessity,  certain  space  is  set  aside  for  reserve-stock  rooms. 
Usually  it  is  the  least  desirable  space  in  the  house.  Base- 
ments and  lofts  above  selling-floors  make  ideal  stock-rooms 
because  the  space  is  of  less  value,  and  ample  space  may  be 
given  each  department  in  order  that  its  merchandise  may 
be  kept  separate  from  all  others.  Again,  these  are  most  adapt- 
able for  stock-rooms  because  they  are  inaccessible  to  the 
help  in  general  (much  petty  thieving  being  done  direct  from 
the  reserve  stocks  by  the  help)  and  stocks  may  be  kept  cleaner 
and  more  orderly  with  less  labor.  One  large  store  makes  use 
of  its  furnace-room  by  using  it,  both  winter  and  summer,  for 
reserve-stock  room  for  hosiery.  Hosiery  is  bought  in  case 
lots  and  placed  in  this  reserve  stock.  Sometimes  it  is  moved 
to  regular  stock  in  less  than  a  week's  time,  and  at  other  times 
it  remains  in  reserve  stock  for  eight  or  ten  months.  Need- 
less to  say,  this  store  has  not  the  best  reputation  for  hosiery 
in  the  city. 

An  argument  that  is  sometimes  used  against  stock-rooms, 
and  which  is  indeed  a  just  argument,  is  that  where  enough 
space  is  allowed  for  this  purpose  the  buyers  strive  to  and  feel 
the  need  of  purchasing  enough  merchandise  to  keep  all  space 
filled.  In  this  way  much  more  merchandise  than  is  necessary 
finds  its  way  into  the  house  and  stocks  are  not  turned  as 
frequently,  and  losses  through  dead  stock  are  more  prevalent. 
Doubtless  many  small  stores  have  no  need  for  stock-rooms, 
and  they  would  be,  indeed,  a  hindrance  to  correct  mer- 
chandizing. A  larger,  well-assorted  ready  stock  may  be  car- 
ried and  less  capital  will  be  invested.  It  is  much  better  to 
depend  on  the  reserve  stocks  of  the  wholesalers,  jobbers, 
or  manufacturers,  and  much  more  profitable  for  the  retailer. 

Sampling.     A  store  in  Natchez,  Mississippi,  loses  many 

dollars  monthly  because  of  the  lack  of  an  efficient  method 

for  the  giving  of  samples.    When  a  customer  asks  for  samples 

swatches  are  cut  direct  from  the  bolt,  enough  being  given  at 

163 


RETAIL   BUYING 

one  time  for  three  or  four  samples.  The  bolt  is  then  folded 
and  returned  to  its  proper  place  in  the  shelving.  On  sev- 
eral occasions  green  clerks  have  made  mistakes  by  cutting 
six-  or  eight-inch  samples  off  the  bolt,  lengthwise,  cutting 
along  the  selvage  instead  of  crosswise.  When  a  customer 
returns  to  make  a  purchase,  the  section  running  entirely 
across  the  bolt  of  cloth  except  for  the  sample  which  has 
been  cut,  is  thrown  in  with  the  purchase. 

A  more  efficient  method,  and  one  that  will  save  many 
dollars  during  a  year,  as  well  as  aid  in  stock-keeping  and 
save  the  salesman's  time,  is  to  cut  two  one-inch  strips 
from  each  bolt  of  goods,  as  it  is  received  in  the  department, 
the  entire  width  of  the  material,  these  strips  then  being  cut 
into  six-inch  swatches,  suitable  to  be  handed  out  to  the  cus- 
tomer. These  swatches  are  then  put  in  a  large  manila  en- 
velope, kept  for  the  purpose,  and  placed  on  the  inside  of 
the  bolt,  next  to  the  board. 

Stores  desirous  of  obtaining  accurate  figures  showing  the 
amount  expended  in  sample-giving,  as  well  as  those  following 
a  practice  of  making  a  direct  charge  to  "mark-down"  for 
merchandise  used  for  this  purpose,  have  a  system  by  which 
each  person  in  charge  of  a  department  must  enter  in  a  book, 
which  is  kept  for  the  purpose,  the  yardage,  together  with 
the  price,  cut  from  each  bolt  for  samples.  No  one  except 
the  stock-keeper  has  the  authority  to  cut  a  sample  from  any 
bolt  of  goods.  At  the  end  of  each  week  these  books  are 
totaled  and  the  grand  total  is  sent  to  the  office  to  be  charged 
and  recorded. 

Open  Stock.    Grocery  stocks,  and  especially  canned  goods, 

etc.,  should  be  shifted  equally  as  often  as  any  other  kind  of 

merchandise,  and  in  some  cases  it  is  advisable  to  shift  them 

even  more  frequently.     For  example,  in  a  small  grocery 

condensed  milk  was  found  that  had  been  on  the  shelf  over 

two  years.    The  milk,  upon  opening  the  can,  was  found  to 

164 


STOCK-KEEPING   AND   STOCK-RECORDING 

be  so  thick  and  hard  that  it  had  to  be  cut  out  with  a  knife. 
This  grocer  had  trusted  his  stock-work  to  young  boys,  who 
did  their  work  in  the  easier  way.  When  fresh  shipments  were 
received  the  new  goods  were  put  on  the  front  of  the  shelving 
and  the  older  was  shoved  to  the  back.  Consequently  the 
new  goods  were  selling  before  the  old. 

Once  each  week  the  entire  shelving  should  be  gone  through, 
canned  goods  wiped  off,  shelving  scrubbed,  condensed-milk 
cans  turned,  and  the  newer  goods  put  to  the  back  of  the 
shelving  in  order  that  the  old  will  sell  first.  This  keeps  the 
stock  fresh  and  new.  Besides  this,  each  man  in  charge  of  a 
stock  should  see  that  his  entire  stock  is  dusted  each  morning. 
The  dusting  of  a  grocery  stock,  or  a  paint-and-varnish  stock, 
is  just  as  important  as  the  cleaning  of  a  fine  piece-goods 
stock.  The  cleanhness  of  a  store  will  impress  a  customer 
more  than  anything  else,  especially  where  the  store  is  handling 
commodities  which  the  customer  must  eat. 

Arranging  and  Handling  Open  Stock.  The  stock  is  ar- 
ranged on  the  shelving  in  the  same  orderly  manner,  and 
placed  so  as  to  attract  the  eye  of  the  prospective  customer. 
The  slow  sellers  should  be  given  the  most  conspicuous  places, 
and  the  free  sellers  should  be  placed  in  the  less  desirable 
locations.  A  stock-boy  should  be  required  to  go  through 
the  stock  frequently  during  the  day,  moving  up  and  filling 
in  from  behind,  to  fill  the  gaps  caused  through  the  sales. 

The  main  stock-work  should  be  done  the  first  thing  in  the 

morning.    At  that  time  there  are  few  customers  to  disturb 

the  work,  and  the  salespeople  are  more  ready  to  do  such 

work  than  after  a  hard  day.     In  addition  all  merchandise 

should  be  removed  from  the  shelving  once  each  week  and 

the  shelves  scrubbed,  the  merchandise  cleaned  and  replaced 

to   the    proper    place.      Brushing    clothing,    wiping   shoes, 

polishing  hardware,  etc.,  is  not  the  most  pleasant  occupation 

for  the  salesperson,  but  it  certainly  saves  money  for  the  mer- 

165 


RETAIL   BUYING 

chant.  The  keeping  of  every  article  fresh,  free  from  dust, 
and  in  a  thorough  salable  condition  is  one  of  the  most  im- 
portant functions  of  the  clerk's  duties.  Dust  and  dirt  can 
be  removed  from  clothing,  if  taken  in  time,  which  would 
otherwise  cause  discoloration  and  damage. 

Filling  in  Open  Stock.  Replenishing  stock  must  also  be 
done  at  this  time.  Lists  should  be  made  out  (if  the  reserve 
stocks  are  kept  in  regular  stock-rooms)  showing  what  is 
needed.  In  smaller  stores  mental  inventory  serves  the  pur- 
pose, as  one  section  is  taken  at  a  time  and  filled  in  before 
taking  another. 

Want-books  should  be  kept  in  every  department,  and 
salespeople  should  be  instructed  to  enter  everji,hing  called 
for  that  they  are  unable  to  furnish.  Stock-books  (want- 
books)  are  kept  in  reserve  stocks  also,  in  order  that  entries 
may  be  made  when  the  amount  on  hand  of  any  commodity 
reaches  the  minimum.  By  using  such  a  method  there  is 
absolute^  no  possibility  of  ever  being  out  of  any  staple 
commodity.  This  alone  does  more  to  build  a  thriving 
business  than  any  other  one  thing. 

Few  salespeople  realize  that  stock-keeping  is  an  art; 
an  art  m  which  no  lazy  person  can  become  proficient. 
In  order  to  keep  a  department  in  decent  condition  every 
moment  that  can  be  spared  from  serving  trade  should  be 
spent  arranging  and  rearranging  stock.  A  large  amount 
of  money  is  invested  in  stocks  and  the  customers  must 
see  the  goods  before  they  buy.  They  never  buy  a  jumbled 
mass. 

Old  Stock.  Dead  stock  seems  to  be  quite  a  problem  in 
some  stores.  We  find  it  placed  high  on  top  shelves,  in  draw- 
ers, under  the  counters,  in  stock-rooms,  and  in  other  out- 
of-the-way  places  where  it  is  utterly  impossible  to  make  it 
move  by  sale.     In  fact,  most  of  the  time  the  old  stock  is 

anywhere  but  where  it  should  be.     The  merchant  is  not 

166 


STOCK-KEEPING    AND    STOCK-RECORDING 

overly  anxious  about  exposing  it  to  view,  although  much  of 
his  well-earned  profit  is  tied  up  in  it.  He  appears  to  be 
ashamed  of  the  fact  that  he  has  made  a  few  mistakes.  The 
salespeople,  naturally,  take  the  same  attitude  toward  this 
kind  of  merchandise. 

The  merchant  is  indeed  a  poor  reader  of  human  nature 
when  it  comes  to  making  a  study  of  his  salespeople.  That 
the  salespeople  will  do  things  in  the  easiest  way  is  an  undis- 
puted fact.  They  will  sell,  or  attempt  to  sell,  the  thing  that 
can  be  shown  with  the  least  exertion.  Few  will  climb  to 
the  top  of  a  step-ladder,  or  dig  through  drawers  and  under 
counters,  to  get  rid  of  a  "sticker,"  unless  a  "spiff"  is  attached 
to  furnish  the  inducement.  It  is  generally  found  that  the 
average  salesperson  will  show  the  merchandise  in  which  he 
has  a  full  line  of  sizes  and  styles,  so  that  the  customer  may 
make  an  easy  selection. 

Handling  Old  Shoe  Stocks.  A  "live-wire"  shoeman  has 
found  a  way  to  keep  his  store  clean  of  old  stock.  Up  to  two 
years  ago  he  had  many  troubles  and  sleepless  nights.  After 
several  months  spent  in  making  a  study  of  his  store,  his  sales- 
people and  their  methoclis,  and  his  stock,  he  decided  to  move 
all  the  old  stock  to  the  most  accessible  place  on  the  shelves. 
Frequently  he  found  it  necessary  to  change  the  lot  number 
in  order  to  hide  the  identity  of  some  certain  shoe.  This 
caused  some  of  his  clerks  to  show  certain  numbers  without 
recognizing  them  as  "stickers."  Whenever  any  number  in 
stock  begins  to  slow  up  in  selling  it  is  moved  so  as  to  be  most 
convenient  to  the  salesperson.  The  salesperson  is  instructed 
to  show  merchandise  first  from  these  shelves.  When  the  mer- 
chandise becomes  a  real  "sticker"  it  is  moved  to  the  counter- 
bargain  department.  The  price  is  cut  sufficiently  to  make 
it  move.  In  this  way  this  merchant  has  built  up  a  good 
business,  as  well  as  found  a  way  to  make  his  one  of  the 

cleanest  shoe  stocks  in  the  State. 

167 


RETAIL    BUYING 

Merchants  in  all  linos  of  business  make  a  mistake  in  putting 
the  good  sellers  out  where  they  will  be  seen  and  pushed, 
and  the  old  stock  out  of  the  way,  where  it  may  remain  until 
the  next  inventory  season.  Why  not  put  some  of  the  mer- 
chandise that  is  called  for  every  hour  in  the  day  under  the 
counter?  There  is  no  chance  of  it  becoming  forgotten.  The 
old  stock  should  be  placed  before  the  public  and  kept  there. 
Goods  that  remain  on  the  shelves  are  wasting  time  and 
money  for  the  merchant.  Why  not  admit  the  mistake,  cut 
the  price,  no  matter  what  the  sacrifice,  and  get  rid  of  such 
merchandise?    It  pays  in  the  long  run  every  time. 

Keeping  Fixtures  in  Good  Condition.  Counters  and  cases 
should  be  cleaned  with  furniture  and  glass  polish  at  least 
once  per  week,  rubbed  with  cloths  each  morning,  and  dusted 
at  numerous  intervals  during  the  day.  It  does  not  pay  to 
have  the  customer  detect  any  dust  or  dirt  on  the  counter. 
It  frequently  happens  that  there  is  dust  on  the  counter, 
and  when  merchandise  is  placed  on  the  counter  the  dirt 
flies  up  on  the  customer,  or  the  delicate  article  being  shown 
is  soiled.  Salespeople  have  plenty  of  time  during  the  day, 
and  they  should  become  accustomed  to  dusting  the  counters 
once  per  hour,  whether  the  counters  need  it  or  not. 

Arranging  Counter  Displays.  After  cleaning  coimters  and 
cases  each  morning  some  kind  of  a  display  should  be  made. 
Unit  displays  are  the  most  effective.  For  instance,  the 
toilet-goods  cases  should  have  a  small  unit  display  of  toilet 
goods  cleverly  displayed  on  the  top  of  the  case.  Fiver's 
goods  will  serve  as  an  example. 

Florayme  extract  (essence),  small,  medium,  and  large. 
"        Toilet  water. 
"        Eau  vegetal. 
"        Savon  (soap). 
"        Poudre  de  riz  (face  powder). 
"        Poudre  a  sachet. 
168 


STOCK-KEEPING    AND    STOCK-RECORDING 

The  line  can  be  displayed  in  such  a  manner  as  to  attract 
the  eye  of  the  prospective  customer.  The  second  morning 
a  different  line  should  be  shown,  displayed  in  a  different 
way;  and  so  on  until  the  entire  stock  has  been  shown  in 
this  manner.  The  grocery  department  can  use  a  different 
line  of  canned  goods  each  morning,  carrying  out  the  same 
idea. 

Keeping  Cartons  in  Good  Condition.  In  order  to  keep 
the  appearance  of  the  store  at  its  best,  the  salespeople  must 
be  made  to  put  up  the  merchandise  after  they  have  served 
the  customer.  This  must  be  done  not  only  to  preserve  the 
appearances,  but  to  reduce  the  losses  caused  by  damaged 
merchandise.  Two  years  ago,  while  in  Green  Bay,  Wiscon- 
sin, the  writer  had  the  extreme  displeasure  of  observing  a 
poor  salesgirl  attempt  to  make  a  sale.  The  counters  were 
not  clean,  to  begin  with,  as  there  was  a  pile  of  merchandise 
already  there  which  should  have  been  previously  replaced 
on  the  shelving.  The  girl's  customer  wanted  something  for 
an  evening  dress.  The  girl  began  showing  delicate  shades  in 
taffetas,  satins,  and  charmeuses.  Ten  or  twelve  pieces  were 
shown  when  the  customer  decided  that  she  would  like  to 
see  what  nets,  combined  with  the  satins,  would  look  like. 
The  girl  showed  several  pieces  of  net,  then  brought  several 
dirty,  dusty  stock-boxes,  full  of  chiffons,  and  placed  the 
boxes  on  top  of  the  dfelicate  silks  and  nets.  Needless  to 
say,  the  customer  did  not  buy.  She  walked  out  looking 
rather  disappointed.  The  girl  went  back,  put  on  her  hat 
and  coat,  and  walked  out  of  the  store  to  go  to  lunch, 
leaving  the  entire  lot  of  merchandise  on  the  counter  just 
where  she  had  left  her  customer.  No  wonder  the  customer 
did  not  buy  and  that  the  store  is  doing  less  business  than 
it  should  be  doing.  A  clever  salesperson  could  have  handled 
this  particular  customer,  and  put  up  the  merchandise  as 

quickly  as  the  customer  showed  that  she  did  not  care  for 

169 


RETAIL    BUYING 

it,  after  having  i)laccd  something  else  on  the  counter.  Three 
or  four  pieces  could  have  been  left  on  the  counter  at  all 
times.  The  customer  would  have  had  fewer  pieces  to  be- 
come confused  over,  and  the  chances  for  a  selection  would 
have  been  much  greater.  The  salesperson  would  have  had 
little  trouble  in  replacing  the  four  pieces  to  the  shelving 
before  attempting  to  serve  the  next  customer  or  going  to 
lunch,  and  nothing  would  have  become  soiled  and  damaged. 

The  Importance  of  Stock-recording.  A  small  haber- 
dashery, on  one  of  Chicago's  busiest  corners,  is  doing  a 
business  of  $150,000  a  year  in  a  surprisingly  small  space 
through  the  aid  of  a  systematic  method  of  stock-keeping  and 
recording.  A  small  stock-room  on  one  of  the  upper  floors 
is  connected  by  a  square  chute  with  the  main  store.  A  re- 
serve stock  of  merchandise,  sufficient  to  supply  the  demand 
for  four  days,  is  kept  under  the  care  of  a  stock-man  in  this 
stock-room.  The  salespeople,  when  in  need  of  merchandise, 
may  telephone,  by  the  use  of  a  house  telephone  connecting 
the  store  with  the  stock-room,  and  the  merchandise  is  im- 
mediately dropped  down  the  chute,  the  only  outlet  of  the 
stock-room.  The  bulk  of  the  merchandise,  being  staples, 
may  be  obtained  from  manufacturers  or  jobbers  on  several 
days'  notice;  in  fact,  some  of  it  may  be  had  the  same  day 
the  order  is  delivered.  Hence  the  method  of  stock-recording 
in  this  case  is  very  important. 

The  merchandise  loses  its  individual  identity  upon  being 
received.  It  is  immediately  given  a  number  which  denotes 
what  the  commodity  is,  the  style,  color,  etc.  The  size, 
should  it  have  one,  is  written,  in  each  case,  after  the  number. 
For  instance,  1890-33-14  would  denote  the  article  sold  was 
a  shirt,  all  one-thousands  being  shirts,  and  33-14  would  de- 
note the  size,  33-inch  sleeve,  and  14  signifying  the  size  of  the 
neckband.  By  referring  to  the  stock-book,  page  eighty-nine, 
the  second  and  third  figures  furnishing  the  page  key,  number 

170 


STOCK-KEEPING    AND    STOCK-RECORDING 

1890  shows  the  name  of  the  manufacturer  from  whom  pur- 
chased, the  pattern,  and  the  color. 

Four  cashiers  are  used  in  the  store  during  busy  hours, 
and  these  have  little  or  no  regular  work  to  do  during  the 
early  forenoon  when  trade  is  not  brisk.  They  each  spend 
several  hours  sorting  sales-tickets,  keeping  each  commodity 
separate.  All  shirt  tickets  are  put  together;  likewise  hosiery 
tickets  in  another  pile,  and  so  on.  A  chart  is  then  made 
showing  what  merchandise  has  been  sold,  in  order  that  re- 
orders may  be  intelligently  made.  Merchandise  is  ordered 
daily  in  some  lines,  or  every  second  day,  and  in  other  lines 
every  Monday  morning,  and  the  merchandise,  mainly  from 
local  manufacturers  or  jobbers,  is  usually  received  within 
twenty-four  hours. 

Stock-recording  with  this  store  is  very  necessary,  as  its 
unusually  small  floor  space  calls  for  a  well-systematized 
recording  method.  With  this  system,  however,  the  store 
makes  many  times  the  stock-turns  of  the  average  store.  The 
floor  space,  being  so  limited,  calls  for  unusual  attention  to  the 
merchandizing,  and  this  attention  assures  frequent  stock- 
turns  and  little  dead  stock. 

Stock-recording  Systems.  There  are  many  simple  methods 
of  stock-recording.  One  store  makes  use  of  an  ordinary 
note-book,  entering  commodities  received,  consecutively 
numbered  (separating  each  shipment  by  a  blank  line),  to- 
gether with  the  name  of  the  manufacturer  from  whom  re- 
ceived. The  merchandise  is  given  the  same  number  as  en- 
tered in  the  book,  together  with  the  price-mark,  for  future 
reference.  This  system  is  adaptable  for  grocery,  hardware, 
and  drug  stocks,  as  well  as  dry-goods  and  haberdashery 
stocks. 

The  following  more  elaborate  system,  which  is  practical 

for  any  type  stock  of  merchandise,  is  particularly  adapted 

to  a  piece-goods  stock.    Regular  board-end  caps  or  metal- 

171 


RETAIL    BUYING 

bound  tags  are  attached  securely  to  the  bolt  as  soon  as  it 
reaches  the  stock-room.  On  this  tag  is  recorded  the  date 
upon  which  the  merchandise  was  received,  the  place  where 
the  necessary  data  pertaining  to  this  particular  piece,  such 
as  from  whom  purchased,  cost,  shade  number,  etc.,  may  be 
found,  the  name  of  the  material,  width,  and  sale  price.  An 
ordinary  stock-book  is  used,  and  entries  are  made  as  soon  as 
the  merchandise  is  received. 


XIII 

INSTRUCTION  TO   SALESPEOPLE 

"Why  don't  you  sell  your  goods  to  your  clerks?" 

"Why,  what  do  you  mean?"  said  the  grocer. 

"Watch  that  sale  over  there  and  you  will  see,"  replied 
the  visitor. 

A  customer  was  attempting  to  purchase  canned  tomatoes. 
It  seemed  that  the  customer  was  undecided  between  the 
ten-  and  the  thirteen-cent  cans,  both  being  the  same  size. 
The  clerk  was  unable  to  tell  the  woman  the  difference  in 
quality,  and  in  fact  went  so  far  as  to  say  that  he  did  not  think 
there  was  much  difference,  as  both  cans  were  put  out  by  the 
same  concern.  Finally  the  grocer  had  to  take  a  hand  in  the 
sale.  He  explained  to  the  customer  that  the  more  expensive 
cans  were  filled  with  rich,  red  whole  tomatoes,  and  a  little 
juice;  while  the  other  can  was  filled  with  broken  fruit,  of  a 
slightly  discolored  appearance,  with  plenty  of  juice.  Of 
course  he  sold  the  better  goods  once  he  had  explained  the 
difference. 

The  grocer,  preferring  to  sell  the  better  grade,  as  there  was 
a  larger  margin  of  profit,  should  have  opened  one  of  each  of 
the  cans  so  that  all  of  his  salespeople  might  have  learned 
the  difference.  This  instruction  would  have  cost  nothing, 
as  the  opened  can  could  have  been  utilized  in  one  of  the 
homes  of  some  member  of  the  store  family,  who  would  will- 
ingly have  paid  the  cost  price.    It  would  have  enabled  all 

173 


RETAIL    BUYING 

of  the  store  people  to  talk  intelligently  on  this  one  commodity, 
and  it  would  have  enabled  them  to  get  the  customer's  con- 
fidence. 

In  a  companion  volume  of  this  series  on  Retail  Selling 
will  be  found  a  full  discussion  of  the  subject.  The  purpose 
of  the  present  chapter  is  to  emphasize  the  buyer's  relation 
to  the  instruction  of  the  clerks,  particularly  in  merchandise, 
for  it  is  apparent  that  the  one  who  bought  the  goods  is  most 
familiar  with  it,  and  therefore  best  able  to  explain  its  merits 
to  others.  Therefore  it  is  quite  logical,  even  in  large  city 
department  stores  which  maintain  elaborate  educational 
organizations,  that  the  work  of  instruction  in  merchandise, 
and  in  handling  the  merchandise,  should  devolve  upon  the 
buyers,  and  equally  that  this  function  of  the  buyer  be  in- 
cluded in  a  treatise  on  his  work. 

Meetings  for  Discussion.  There  are  many  methods  used 
by  buyers  in  giving  the  necessary  information  to  the  sales- 
people and  in  training  them  to  greater  efficiency.  Meetings 
of  those  who  are  selUng,  with  demonstration  sales,  and  dis- 
cussion of  those  sales,  often  bring  out  points  which  the  buyer 
feels  those  selling  need.  One  buyer,  who  conducts  meetings 
of  this  kind,  watches  the  salespeople  during  the  week,  making 
note  of  the  points  of  salesmanship  which  he  considers  espe- 
cially strong  or  weak.  In  the  discussion  after  the  demonstra- 
tion sale  he  will  ask, for  example, "Miss  Jones,  if  a  mother  and 
her  daughter  were  together,  and  the  daughter  wished  to  buy 
French  heels,  and  the  mother  wished  her  to  have  conunon- 
sense  heels,  what  would  you  do?"  In  these  meetings  new 
points  concerning  the  merchandise  may  also  be  presented. 
This  same  shoe  buyer  explains  every  week  any  new  mer- 
chandise which  has  come  in,  or  any  points  in  regard  to  newest 
styles  which  he  feels  is  important.  The  girls  themselves, 
who  have  charge  of  any  part  of  the  stock,  often  give  points 

of  interest  concerning  the  merchandise. 

174 


INSTRUCTION   TO   SALESPEOPLE 

Printed  Information.  Another  method  of  instruction  is 
to  place  at  the  disposal  of  the  employees  such  trade  journals 
or  manufacturers'  publications  as  will  be  helpful  to  them. 
For  example,  Hart,  Schaeffner  &  Marx  issue  publications 
explaining  the  manufacture  of  their  clothing,  and  suggestions 
which  they  feel  will  be  helpful  to  the  retail  clothier  and  his 
clerks.  The  buyer  can  obtain  these  by  inquiry,  and  can 
encourage  his  salespeople  to  read  them.  It  is  becoming 
more  and  more  the  custom  for  manufacturers  to  issue  pub- 
lications of  this  kind,  and  they  are  glad  to  send  them  to  the 
buyers  who  are  interested,  even  though  not  purchasers  of 
their  goods. 

Bulletin-boards.  One  effective  means  of  interesting  the 
employees  along  this  line  has  been  found  to  be  through  a 
bulletin-board,  on  which  is  posted  a  list  of  the  articles  which 
the  buyer  considers  important.  Here  is  also  posted  a  list 
of  the  new  merchandise  and  any  other  information  to  which 
the  attention  of  the  employees  should  be  called. 

Personal  Attention.  Of  course  it  is  not  possible  to  make 
every  clerk  take  advantage  of  such  training,  but  the  live 
buyer  who  is  working  continually  with  his  people  can  weed  out 
the  people  who  do  not  develop  and  employ  fresh  material 
to  take  advantage  of  his  training.  Frequently  a  high-grade 
salesgirl  may  be  found  in  this  fresh  material.  Shortly  before 
this  was  written,  a  green  country  girl  applied  to  a  ready- 
to-wear  buyer  in  an  Eastern  city  for  a  position.  The  buyer, 
not  having  much  faith  in  recommendations,  asked  what 
experience  she  had  had  and  what  salary  she  had  received. 
The  girl  replied  that  she  had  spent  four  months  working  in 
a  fruit-store,  receiving  four  dollars  per  week  as  compensa- 
tion. She  added  that  she  did  not  care  for  that  kind  of  work, 
and  that  she  wanted  an  opportunity  of  making  good  in  a 
live  department.    The  girl  was  so  earnest  in  her  convictions 

that  the  buyer  engaged  her  to  begin  working  the  following 

175 


RETAIL    BUYING 

morning.  She  was  instructed  to  spend  the  first  week  going 
through  the  stock  and  observing  the  girls  selling  on  the  floor. 
At  the  expiration  of  this  period  she  had  learned  that  every 
customer  was  to  be  approached  the  moment  she  entered  the 
department  and  greeted  with  a  smile  and  a  cheery  "Good- 
morning"  or  "Good-afternoon,"  as  the  case  might  be.  Dur- 
ing the  week  she  had  learned  the  other  simple  principles  of 
salesmanship,  as  well  as  some  little  knowledge  of  the  mer- 
chandise she  was  to  handle.  Soon  she  was  selling  more 
goods  than  any  other  girl  on  the  floor,  because  she  had  high 
aspirations  and  because  she  took  advantage  of  the  oppor- 
tunity and  of  the  suggestions  of  the  buyer.  The  buyer  had, 
however,  carefully  observed  her  selling-methods  and  had 
frequently  asked  one  of  the  older  girls,  in  this  girl's  presence, 
whether  or  not  she  did  not  think  a  certain  method — as,  for 
instance,  one  demonstrating  how  to  put  the  coat  properly 
on  the  customer — the  best  to  use.  The  girl,  being  quite  apt, 
quickly  grasped  the  point  and  changed  her  methods  accord- 
ingly. In  addition  to  this,  sales  demonstrations  were  fre- 
quently staged,  one  girl  acting  as  the  salesgirl,  another  as  the 
customer,  and  the  remaining  members  of  the  force  criticizing 
the  methods  used  in  the  selling.  Not  only  the  new  help 
profited  through  these  demonstrations,  but  many  of  the 
older  people  realized  that  there  were  better  methods  than 
the  ones  which  they  had  been  using  for  years. 

Teaching  Points  on  Merchandise.  The  merchandise  is 
naturally  the  most  important  thing  to  know  about.  That 
kind  of  information  is  necessary  every  moment  in  the  day, 
as  the  customer  generally  asks  sensible,  logical  questions 
about  the  merchandise  which  she  contemplates  purchasing. 
She  wants  to  know  about  the  things  which  enter  into  the  man- 
ufacturing of  the  commodities,  and  the  length  of  service 
they  may  give.    The  salesman  must  learn  how  to  pick  the 

commodity  to  pieces  in  order  that  the  most  important  selling- 

176 


INSTRUCTION   TO   SALESPEOPLE 

points  may  be  given  to  the  customer  without  any  hesitancy. 
Even  ordinary  sausage  has  selling-points.  The  customer 
purchases  sausage  to  eat.  Consequently  taste  is  the  most 
important  feature.  The  kind  of  pork  used,  as  well  as  the 
spices;  the  maker's  name  and  the  place  of  manufacture, 
as  well  as  many  other  points,  are  of  value  in  creating  a 
desire.  The  salesman  is,  after  all,  a  creator  of  wants,  and 
in  order  to  create  these  wants,  whether  it  be  for  sausage, 
corsets,  furniture,  or  coal,  the  salesman  must  know  his 
merchandise. 

Of  course,  the  same  feature  that  would  appeal  to  one  cus- 
tomer might  not  appeal  to  another.  For  instance,  using  a 
piece  of  furniture  as  an  illustration,  we  have  the  following 
points  to  talk:  Style,  price,  exclusiveness,  service,  maker's 
name,  testimonials,  reputation,  etc.  One  customer  might 
be  interested  in  how  this  furniture  would  wear,  while  another 
would  care  more  about  the  style.  The  average  customer 
does  not  tell  us  what  points  she  is  the  most  interested  in. 
Consequently  the  salesman  must  be  capable  of  judging  his 
customer  in  order  that  he  may  not  bore  her  by  taking  up  her 
time  in  telling  her  something  that  she  does  not  care  about 
hearing. 

Below  are  listed  some  of  the  important  facts  about  several 
commodities,  which  will  serve  as  an  example  of  the  type  of 
information  which  should  be  provided  clerks. 

Talking-points  for  Clothing  Salesmen 

There  are  clerks  who  know  that  a  certain  suit  is  a  good  suit. 
There  are  others  who  know  why  a  good  suit  is  a  good  suit.  Both 
kinds  are  employed  in  the  men's-clothing  department. 

Everything  else  being  equal — native  intelligence,  interest  in  the 

work,  knowledge  of  the  principles  of  salesmanship,  energy,  and 

alertness — the  why  clerk  will  sell  the  most.    If  he  does  not  make 

the  greatest  number  of  sales  he  will,  at  least,  make  them  in  a  more 

12  177 


RETAIL   BUYING 

creditable  manner  than  the  clerk  who  is  only  able  to  say,  "Here 
is  a  good  suit  of  clothes  and  it  is  just  your  fit  and  model."  He  can 
call  attention  to  distinguisliing  points  in  fabric,  fit,  style,  workman- 
ship, and  finish  that  will  interest  and  impress  his  customer  and  in 
the  long  i-un  add  to  the  customer's  satisfaction.  And,  as  every  one 
knows,  the  satisfied  customer  is  the  best  asset  in  building  profitable 
business. 

Instrvct  the  Salesmen.  If  it  were  a  physical  possibility,  no  re- 
tailer could  do  better  than  take  his  corps  of  men's-clothing  sales- 
men through  the  factory  of  a  reputable  manufacturer  of  men's 
clothing,  under  the  direction  and  guidance  of  the  manager  of  the 
house  or  the  foreman  of  the  factory.  The  suit  in  the  making  presents 
seUing-arguments  that  are  not  apparent  to  the  clerk  who  has  seen 
only  the  finished  garment,  but  which  will  prove  invaluable  to  him 
in  his  relations  with  customers.  This  article  is  for  the  purpose  of 
providing  retail  salesmen  with  these  talking-points. 

Testing  the  Fabric.  The  making  of  a  suit  actually  begins  in  the 
receiving-room,  where  the  cloth  that  is  to  go  into  the  suit  first  lands 
in  the  factory.  In  the  receiving-room  the  cloth  is  tested  for  quahty, 
strength,  weight,  and  color.  That  is,  its  suitability  and  quaUty 
are  determined  before  it  is  taken  to  the  next  process  in  the  making. 
The  tests  are  simple,  so  far  as  making  them  goes,  but  what  they 
biing  out  about  the  goods  is  of  the  utmost  importance  in  the  build- 
ing of  a  finished  ganiient  that  is  to  give  the  customer  satisfaction, 
and  the  manufacturer  and  distributer  reputation  for  value. 

No  matter  what  the  cloth  is — cheviot,  worsted,  caslimere,  flannel, 
or  whatever — it  is  tested  for  strength  with  a  view  of  ascertaining 
its  quaUty  and  durability. 

A  small  strip  is  taken  from  every  bolt  of  cloth  as  it  comes  into 
the  receiving-room  and  is  put  on  a  machine  designed  to  register 
the  resistance  of  the  fabric  per  square  inch.  Each  end  of  the  strip 
is  placed  between  clamps,  and  these  are  forced  away  from  each 
other  by  a  screw,  subjecting  the  cloth  to  a  strain  of  20,  30,j40,  or 
more  pounds  to  the  square  inch.  The  better  manufacturers  of 
men's  clothing  consider  this  test  essential  if  the  customer  is  to  get 
the  best  for  the  money.  It  tells  whether  the  goods  are  made  of 
good  raw  material,  and  whether  that  material  is  properly  spun, 
woven,  and  finished. 

Tested  for  Weight.  After  the  fabric  is  tested  for  strength,  it  is 
tested  for  weight.  A  weighing-machine,  built  especially  for  the 
purpose,  is  used.    It  is  graduated  in  such  a  way  as  to  show  whether 

178 


INSTRUCTION    TO    SALESPEOPLE 

the  fabric  weighs  10,  11,  12,  14,  or  16  ounces  to  the  j^ard.  What  a 
piece  of  goods  weighs  has  a  bearing  on  what  it  should  be  used  for 
— summer  clothing,  winter,  or  spring  clothing — and  what  service  it 
should  give,  besides  sho^ving  whether  or  not  the  material  is  up  to 
the  required  standard.  The  weigliing-machine  is  so  dehcately  ad- 
justed that  the  shglitest  variation  is  registered  when  a  piece  an 
inch  square  is  weighed. 

Color,  Pattern,  Etc.  A  third  test,  made  by  an  expert  in  color,  is 
made  to  ascertain  whether  faults  exist  in  color,  etc.  A  sample- 
book  made  of  swatches  of  every  piece  of  goods  that  has  been  ordered 
is  kept  in  the  receiving-room.  After  the  piece,  50  to  SO  yards  in 
length,  is  received  it  is  compared  with  its  corresponding  swatch 
in  the  color-book  to  see  if  it  is  right  in  shade,  pattern,  and  similar 
details.  This  is  done  to  make  sure  that  all  the  suits  of  the  same 
fabric  will  be  uniform  as  to  color. 

For  Dejects  in  Weave.  A  fourth  test,  and  an  important  one,  is 
made  for  defects  in  the  weave.  The  piece  of  goods  is  unroUed  and 
drawn  over  a  frame  called  a  "perch,"  being  carefully  examined  for 
holes,  broken  tlu'eads,  threads  of  the  ■WTong  color,  or,  in  fact,  any 
other  defects  that  would  detract  from  the  quaUty  of  the  suit.  When 
the  examiner  finds  fault  he  ties  a  white  string  in  the  margin  of  the 
piece,  so  as  to  mark  its  location.  Then  the  cutter,  on  beginning 
his  work,  can  avoid  using  that  portion  of  the  goods.  The  tests  made 
on  this  "perch"  insm'e  that  the  customer  gets  a  suit  that  has  no 
defect  m  the  weave  or  color. 

Evidently  the  clerk  who  is  familiar  vnih.  these  tests  is  in  a  posi- 
tion to  infuse  some  interesting,  intelhgent,  and  convincmg  argu- 
ments into  Ills  selling-talk. 

For  Correct  Measurement.  A  fifth  operation  in  the  receiving- 
room  is  a  test  only  in  the  sense  that  it  shows  how  many  yards 
of  goods  there  are  in  a  piece.  This  operation  is  carried  out 
on  a  machine  consisting  of  a  revohang  drum  and  a  meter  to 
indicate  yards.  One  end  of  the  piece  of  goods  is  fastened  on 
the  drum,  and  as  the  drum  revolves  the  yardage  is  registered 
on  the  meter.  Thus  the  clothing  manufacturer  avoids  pajnng 
for  more  goods  than  he  has  received. 

After  the  piece  has  been  measured  it  is  folded  to  await  orders  for 
cutting. 

Sponging  and  Shrinking  the  Cloth.  After  the  quahfications  of  the 
cloth  as  material  for  a  suit  of  clothes  have  been  thus  determined, 
it  is  subjected  to  the  sponging  or  shrinking  process.    In  this  con- 

179 


RETAIL   BUYING 

nection  it  may  be  remarked  that  the  foundation  of  a  good  suit  ia 
laid  in  the  shrinking-room. 

No  matter  how  high  the  quahty  of  a  piece  of  woolen  or  worsted 
fabric,  it  is  hkely  to  be  stretched,  either  intentionally  or  uninten- 
tionally, in  the  process  of  making  or  rolling  at  the  mills.  If  made 
into  a  suit  before  being  shrunk  it  would  do  its  shrinking  on  the 
wearer's  body,  through  rain,  or  even  from  dampness  in  the  air. 

"London"  shrinking,  or  "cold-water"  shrinking,  as  it  is  called, 
takes  up  the  slack  in  the  goods.  There  are  two  important  steps 
in  this  process.  The  first  is  the  wetting  process.  The  piece  of 
cloth  is  placed  between  pieces  of  heavy  wool  cloth  that  have  been 
soaked  in  cold  water  and  have  absorbed  all  the  moisture  they  will 
hold.  One  of  these  wet  cloths,  after  being  dipped  in  a  tank  of  cold 
water  the  width  of  the  goods  to  be  shrunk  and  about  five  feet 
long,  is  laid  on  a  platform.  The  goods  to  be  shrunk  are  laid  on  the 
wet  cloth  and  folded  a  certain  number  of  times,  according  to  the 
weight  of  the  fabric.  If  it  is  thin,  more  folds  are  made;  if  it  is 
thick,  less.    Then  another  wet  cloth  is  placed  on  top  of  the  folds. 

This  process,  a  wet  blanket,  and  then  two  or  four  folds  of  the  cloth, 
is  repeated  until  the  pile  is  six  or  seven  feet  high,  and  weighs  alto- 
gether— wet  cloths,  water,  and  goods — several  tons.  The  goods 
remain  in  this  state  for  from  eighteen  to  twenty-four  hours  and 
gradually  become  as  wet  as  the  cloths. 

Drying  the  Cloth.  After  the  wetting  process  comes  the  second 
step — the  drying.  The  goods  are  taken  from  between  the  wet 
blankets  and  hung  up  to  dry  by  natural  means,  no  artificial  heat 
being  employed.  The  piece  of  cloth  is  hung  up  on  racks.  Its  own 
weight  tends  to  stretch  it  while  it  hangs,  but  it  is  hung  high  enough 
to  prevent  its  touching  the  floor,  as  that  would  arrest  the  shrinking 
process.  After  it  has  thus  dried,  it  is  honestly  London  shrunk. 
It  cannot  shrink  on  the  wearer. 

Subjected  to  Heavy  Pressure.  After  being  taken  from  the  drying- 
room  the  cloth  is  subjected  to  a  further  finishing  process.  It  is 
laid  in  folds  between  heavy  squares  of  cardboard  and  put  into  a 
finishing-press.  Between  every  sixteen  folds  a  hot  iron  is  laid,  and 
the  whole  pile — ^folds  of  goods,  pieces  of  cardboard,  and  hot  plates 
— is  subjected  to  hydraulic  pressure. 

After  this  the  cloth  is  taken  out  of  the  press  and  folded  by  hand 
to  prevent  stretching,  which  would  partly  undo  the  good  accom- 
pUshed  by  the  London  shrinking. 

Not  only  is  the  cloth  shrunk,  but  the  better  houses  also  submerge 

180 


INSTRUCTION   TO   SALESPEOPLE 

all  the  tape,  haircloth,  and  canvas  used,  thus  bringing  all  the 
building  materials  that  go  into  the  suit  to  a  state  of  perfect  uni- 
formity so  far  as  shrinking  goes. 

Steam  Shrinking.  Steam  shrinking  is  used  for  certain  pur- 
poses by  the  better  houses,  but  not  as  a  substitute  for  London 
shrinking.  In  this  process  the  cloth  is  run  over  a  drum,  from 
which  escapes  a  column  of  steam,  and  is  wound  around  a  cylinder. 
It  is  then  unrolled  and  left  standing  in  folds  until  placed  in  the 
drying-room. 

After  the  London-shrinking  process,  and  the  finishing  process, 
which  smooths  out  wrinkles  and  gets  the  cloth  into  good  shape,  it 
is  ready  for  the  cutting-room. 

The  Cutter's  Pattern.  The  designer  has,  of  course,  done  his  work 
before  this  stage  of  the  process  is  reached.  He  has  originated  style 
ideas  which  embody  the  best  views  of  the  trade  for  the  coming  sea- 
son. Much  of  the  designer's  work  is  intangible — the  combining  of 
style  and  fashion  trends  into  an  idea  or  number  of  ideas  which  will 
meet  with  the  needs  of  the  trade  and  be  in  conformity  with  the  pre- 
vailing style  in  men's  clothes.  What  he  does  to  get  his  ideas  is  not 
of  great  use  to  the  clerk  in  seUing.  But  the  clerk  should  know  how 
his  ideas  are  given  tangible  form  and  what  their  relationship  is  to 
the  cutter's  pattern. 

The  cutter  works  from  block  patterns.  These  are  the  designer's 
ideas  in  tangible  form.  They  are  made  from  what  are  called 
"black  patterns,"  the  first  pattern  the  designer  works  out  of  his 
ideas  and  adaptations  of  what  will  be  the  mode  in  men's  clothes. 
The  black  pattern  is  so  named  because  it  is  made  of  black  paper. 
The  designer  originates  the  black  pattern  for,  let  us  say,  a  size  37 
sack  suit.  The  style  of  the  season  is  to  be  a  sack  suit,  coat  29 
inches  long  and  shoulder  43/^  inches  in  width. 

Model  Closely  Examined.  One  suit  is  cut  out  from  the  black 
pattern  and  then  made  up.  This  is  an  experimental  model.  It  is 
examined,  discussed,  and  criticized  from  every  possible  angle — 
width  of  lapel,  length  of  coat,  set  of  shoulder,  width  of  shoulder, 
everjiihing  that  pertains  to  its  shape  and  design;  everything  that 
will  affect  its  looks,  fit,  comfort,  and  adaptability  to  the  use  for 
which  it  was  originally  intended. 

When  this  experimental  model  meets  the  approval  of  all  con- 
cerned in  its  making,  block  patterns  for  the  cutter's  use  are 
made  in  all  sizes,  from  37  up  to  42,  and  from  37  down  to 
size  33.     It  must  be  understood  that  this  is  the  process  for 

181 


RETAIL   BUYING 

one  model  only — a  sack  suit.  Every  model  and  the  pattern 
for  it  are  created  in  the  same  way. 

When  the  patterns  for  a  season  are  completed  by  the  designer 
and  are  in  the  cutting-room  the  cutting  begins. 

The  Hand-cutting  Process.  All  the  better  manufacturing  houses 
cut  by  hand,  contrary  to  the  prevailing  idea  that  fifty  or  sixty 
or  more  suits  are  cut  out  at  once  by  macliinery.  Hand-cutting 
assures  perfect  fit  and  proportion  in  every  garment.  In  cutting 
goods  by  machinery  the  size  scale  in  the  top  and  bottom  suits  of 
the  pile  is  hkely  to  vary. 

In  the  cutting-room  of  the  manufacturing  house  will  be  found 
long  tables  on  which  the  goods  are  laid  out  for  cutting.  The  pat- 
tern is  marked  out  for  a  whole  suit.  The  patterns,  made  of  card- 
board, are  laid  out  on  the  piece  of  goods  which  is  to  be  cut  and  are 
marked  with  chalk. 

All  the  different  sections  of  the  pattern,  when  placed  in  position 
for  cutting,  form  a  "lay."  It  is  several  yards  long.  The  parts  of  a 
"lay"  are  identical  with  the  parts  of  the  pattern,  but  they  are 
laid  in  three  rows  side  by  side,  instead  of  in  a  strip,  as  the  cutter 
would  lay  them. 

Cut  With  Shears.  When  the  pattern  has  been  traced  it  is  cut 
by  hand  with  shears,  just  as  a  custom  tailor  cuts  out  a  single  garment. 
All  the  parts  of  cloth  are  then  done  up  in  bundles — a  bundle  for 
each  garment:  coat,  vest,  and  trousers — and  each  bundle  is  ticketed. 
After  the  suit  is  cut  out  the  lining  is  matched  up  from  a  swatch  of 
the  cloth. 

It  should  be  added  here  that  the  lining  is  measured  and  cut  by 
hand  just  as  the  cloth  is,  and  with  just  as  much  care  and  attention 
to  detail. 

Pattern  Parts  for  Sack  Suits.  The  pattern  parts  for  an  ordinary 
sack  suit  are  as  follows:  Coat:  (1)  fore  part,  (2)  back  part,  (3)  fac- 
ing, (4)  top  sleeve,  (5)  undersleeve,  (6)  coUar,  (7)  imder-coUar.  Trou- 
sers: (1)  forepart,  (2)  back  part,  (3)  waistband,  (4)  fly.  Vest:  (1) 
fore  part,  (2)  back  part,  (3)  facing,  (4)  pockets. 

When  all  the  parts  of  a  suit,  pants,  vest,  or  an  overcoat  are  cut 
out  of  the  cloth,  and  the  lining  has  been  cut  out  to  match,  the 
bundle,  Uning  and  all,  is  ready  to  go  to  the  factorj^  where  work  is 
begun  on  it. 

Factory  or  Making  Department.  Let  us  take  the  coat  now,  for 
example.  Its  seven  parts  of  cloth  and  their  corresponding  parts  of 
lining  are  matched  for  fittings.     This  means:    flaps  for  pockets, 

182 


INSTRUCTION  TO  SALESPEOPLE 

stitches  to  indicate  where  buttons  go,  and  the  matching  of  stripes, 
checks,  and  patterns — patterns  in  the  sense  of  figures  in  the  goods, 
not  in  the  sense  of  the  outhne  the  cutter  follows. 

Matching  for  stripes  or  checks  simply  means  that  if  the  goods 
are  striped,  for  example,  the  stripes  on  the  pocket  must  coincide 
with  the  stripes  in  the  coat,  and  the  stripes  must  coincide  in  any 
other  place  where  two  pieces  of  goods  meet,  as  the  vent  in  the 
back  of  the  coat,  or  the  sleeve  where  it  is  joined  to  the  shoulder. 
The  same  holds  good  for  checks  or  any  other  pattern  in  the  cloth. 
The  clerk  should  remember  this  when  tr>'ing  to  convince  the  cus- 
tomer that  the  suit  he  is  buying  is  of  high  grade. 

Sixty-four  Operations  on  Coat.  After  the  "fitting"  operation 
there  are  sixty-three  separate  operations  through  which  the  coat 
passes  before  it  is  finished — sixty-four  in  all.  These  operations  are 
all  technical  and  are  enumerated  here  in  order  by  their  technical 
name,  as  a  matter  of  interest,  not  as  material  for  clerk  argument. 
They  are  all  details  of  putting  together  the  parts  of  the  coat,  vest, 
or  trousers: 


1. 

Fitting 

22>^.  Felling  silk  lining 

2. 

Pocket-making 

23. 

Edge-stitching 

3. 

Joining 

24. 

Buttonholes 

4. 

Underpressing 

25. 

Pulling  basting 

5. 

Making  canvas  and  collar 

26. 

Pressing  off 

6. 

Baste  canvas 

27. 

Butt  and  ticket 

7. 

Tack  pockets 

28. 

Quilted  shoulder 

8. 

Pad  lapels 

29. 

Brushing 

9. 

Baste  edge  stay 

30. 

Baste  pleats 

10. 

Fell  edge  stay 

31. 

Open  vent,  sleeve 

11. 

Lining-making 

32. 

Baste  silk  fog 

12. 

First  basting 

33. 

Serge  sleeve 

13. 

Edge-seaming 

34. 

Basting  velvet  collar 

14. 

Edge-basting 

35. 

Back  skirt 

15. 

Second  basting 

36. 

Pad  collar 

16. 

Sleeve-making  (machine) 

37. 

Fell  velvet  collar 

17. 

Sleeve-making  (hand) 

38. 

Baste  outside  breast  pocket 

18. 

Sleeve,  collar,  shd.  seams 

39. 

Baste  bell  pockets 

19. 

Shoulder-basting 

40. 

Cuff-making 

20. 

Shaping  collar 

41. 

Felled  edges 

21. 

Put  on  top  collar 

42. 

Fell  slash  pockets 

22. 

Fell  L  in  label  hng. 

43. 

Fell  silk  facing 

183 


RETAIL   BUYING. 

44.  Baste  lap.,  fell  ed.  54.  Shoulder  seams 

45.  Private  st.  edge  55.  Strap  seams,  body 

46.  Put  on  under-coUar  56.  Strap  seams  on  sleeve 

47.  Stitch  under-collar  57.  Catching  down  edge 

48.  Hand  canvas  58.  Sewing  around  pockets 

49.  Piping  seams  59.  Baste  sides  ^  Id.  scka. 

50.  Fitting  machine  plds.  60.  Tacking  flies 

51.  Piping  bell  pockets  61.  After  pressing 

52.  Buttonholes  on  sleeves  62.  Armhole  pieces  34  Id.  coats 

53.  Stitching  armholes  63.  Basting  fly 

64.  Stitching  fly 

Between  the  cloth  and  the  lining  of  a  coat  are  found  the  felt 
padding,  the  haircloth,  and  the  canvas,  all  materials  which  hold 
the  coat  together  and  make  it  keep  its  shape.  The  vital  point  is 
this:  In  a  coat  made  conscientiously  each  part  is  pressed  as  it  is 
put  on.  In  other  words,  the  felt  is  pressed,  then,  when  the  hair- 
cloth is  joined  to  it,  the  seam  is  pressed  again;  v?hen  the  canvas 
is  put  on  the  seam  is  again  pressed,  and  so  on  until  the  coat  is 
finished  and  receives  its  final  pressing  before  going  to  the  drying- 
room,  where  it  is  hung  up  on  a  coat-hanger  for  twenty-four  hours  or 
more. 

In  the  cheaply  made  suit  the  parts  are  all  thrown  together  and 
pressed  once  into  shape — a  shape  that  will  hold  only  temporarily. 

Finishing  and  Examining.  Now  the  finished  garment  goes  to 
the  examining  department.  Here  it  is  subjected  to  the  keen  eyes 
and  expert  scrutiny  of  a  force  of  men  who  see  that  every  step  in 
the  making  process  has  been  faithfully  and  accurately  carried  out. 
Every  operation  of  every  tailor  is  examined  and  checked  up. 

This  is  a  most  important  department  and  a  good  clotliing  manu- 
facturer is  known  by  the  skill  and  conscientious  care  with  which 
his  finished  garments  are  examined. 

Suppose  an  examiner  is  going  over  a  just-finished  coat.  He 
looks  for  defects  in  workmanship,  in  proportion;  he  looks  for 
stains,  spots,  or  flaws  in  the  cloth  or  lining.  He  finds  a  sleeve  too 
long  or  badly  sewed;  he  finds  a  pocket  is  put  in  crooked.  He  pastes 
a  piece  of  paper  at  the  flaw.  It  reads:  "Sleeve  open,"  or,  "Pocket 
not  straight,"  or,  "Buttonhole  not  finished,"  and  so  on. 

When  the  defects  are  all  discovered  and  marked,  the  garment 
is  sent  to  the  busheling  department,  where  the  defects  are  corrected 

184 


INSTRUCTION    TO    SALESPEOPLE 

by  skilled  workmen.    Then  the  garment  or  suit  is  taken  to  the 
stock-room  and  is  made  ready  for  shipment  to  the  retailer. 
Here  the  manufacturer  leaves  off  and  the  clothmg  clerk  begins.^ 


Furniture 

The  following  questions  will  serve  as  a  type  of  the  information 
which  should  be  had  by  the  furniture  salesman.  It  will  apply  to 
any  piece  of  furniture. 

(a)  Of  what  wood  the  piece  is  constructed,  and  the  principal  char- 
acteristics of  the  various  kinds. 

(6)  Reasons  why  the  wood  used  is  the  best  suited  for  that  kind  of 
furniture. 

(c)  Construction,  its  special  features  and  workmanship. 

(d)  Is  it  solid,  veneered,  or  imitation? 

(e)  Points  of  excellence  of  each  kind. 
(/)    Relative  value  of  each  kind. 

ig)  Durability  and  serviceabihty. 

(h)  Finish,  gloss,  rubbed,  or  dull. 

(i)  Advantages  of  the  different  finishes. 

(j)  Glass  and  trimmings,  quality  and  looks. 

(k)  Appearance  or  beauty  of  shape  and  what  makes  or  mars  it. 

(/)  Prevaihng  style  in  use. 

(m)  Price  and  reasons  for  it. 

(n)  Price  as  compared  with  that  of  competitors. 

Linoleum 

I.      Where  the  stock  is  located  in  the  store,  both  the  reserve 
and  active  stock. 

1.  Quantity  on  hand  of  the  various  grades;  only  the  approximate 

amount  is  necessary. 

2.  Patterns  in  stock. 

3.  Widths  in  stock. 

4.  Cost  and  selling  price  of  each  piece. 

5.  The  manufacturer  of  each  piece  and  where  it  is  made. 

» Tfiken  from  Dry  Goods  Economist  by  special  permisaioo, 
185 


RETAIL    BUYING 

11.  The  salesman  should  be  familiar  with  the  selling-methods 
of  the  house,  cash  or  instalment.  Whether  or  not  an  extra 
charge  is  made  for  laying. 

III.  The  salesman  must  know  linoleum.  Since  this  commodity 
is  composed  of  ingredients  collected  from  all  over  the  world, 
a  man  who  knows  linoleum  must  have  some  technical  knowl- 
edge and  some  famiUarity  with  commercial  geography. 

1.  How  is  linoleum  made;  the  stamped,  granulated,  and  straight 

line  inlaid. 

2.  What  are  the  various  materials  entering  into  its  production 

and  where  are  they  secured? 

3.  How  is  it  printed;  how  are  the  colors  and  designs  produced? 

4.  Factors  affecting  the  supply  and  demand  of  these  raw  ma- 

terials. 

5.  Should  be  able  to  tell  something  concerning  the  history  of 

the  product. 

6.  Wherein  the  superiority  of  particular  brands  Ues. 

7.  Should  know  and  be  able  to  make  the  customer  understand 

the  difference  between  linoleum  and  oilcloth  or  other 
substitutes. 

IV.  The  salesman  must  know  how  to  cut  linoleum  so  as  to 
minimize  wastes  from  matching.  Should  be  able  to  figure 
the  price  accurately,  and  to  take  accurate  measurements. 

V.  The  salesman  should  know  for  what  a  particular  grade 
or  pattern  is  best  adapted. 

VI.  He  should  be  able  to  suggest  new  uses.  For  instance,  in 
Europe  linoleum  is  used  in  practically  every  room  of  the 
house.  If  possible  the  salesman  should  provide  himself  with 
pictures  showing  the  various  uses  of  the  product  which  are 
unfamiliar  and  new  to  the  American  consumer. 

VII.  He  should  have  certain  talking-points,  and  these  organized 
so  that  he  may  talk  his  product  intelligently.  Take,  for 
example,  the  sanitary  advantages  of  linoleum,  the  care  of 
linoleum — how  its  life  may  be  prolonged. 

With  this  knowledge,  the  salesman  should  be  able  to  de- 
liver an  interesting  as  well  as  instructive  lecture  on  hnoleum. 
Such  a  lecture  is  unnecessary  every  time  he  shows  the  prod- 
186 


INSTRUCTION  TO  SALESPEOPLE 

uct,  but  there  are  many  instances  where  just  such  a  talk  will 
"take"  with  the  customer.  This  information  \\'ill  enable 
the  salesman  to  inspire  confidence  in  the  mind  of  his  pros- 
pect; a  man  who  knows  his  business  can  always  command 
a  hearing.  Yet  with  this  knowledge  there  is  one  more  thing 
requisite  to  a  good  salesman,  and  that  is: 

VIII.       The  salesman  must  know  his  customer,  or  must  find  him 
out.    This  will  assist  him  in  planning  his  attack. 

Shall  the  salesman  appeal  to  the  saving  instinct?  Shall 
he  make  an  appeal  to  the  esthetic  sense?  Or  shall  he  talk 
quality  and  durabiUty? 

L   The  salesman  should  know  something  of  the  financial  ability 
of  the  prospect. 

2.  Something  of  the  prospect's  tastes,  his  habits,  and  his  home 

life. 

3.  Has  the  prospect  bought  any  linoleum  recently  from  the 

salesman's  house  or  a  competitor?    If  so,  was  the  pur- 
chase satisfactory? 


Coffee 

Raised  in  Brazil,  Venezuela,  Colombia,  Bolivia  (this  is  sup- 
posed to  be  the  best  quality  of  coffee  produced),  Peru,  Guatemala, 
Jamaica,  Arabia,  India,  British  Central  Africa,  Ceylon,  and  Dutch 
East  Indies  (Sumatra,  Celebes,  and  Borneo  are  known  as  Java  prod- 
uce). 

Plant  grows  to  eighteen  feet  in  height  and  is  dark  green  in 
color. 

The  fruit,  or  so-called  "cherries,"  are  at  first  a  dark  green,  but 
as  they  ripen  gradually  change  to  3'ellow  and  then  to  red.  The 
outer  portion  of  the  fruit  is  fleshy,  like  a  cherry.  Each  fruit  con- 
tains two  seeds,  covered  in  turn  by  a  dr}^  smooth,  straw-colored 
husk,  known  as  "parchment."  Between  each  seed  and  the  parch- 
ment is  a  thin  covering  known  as  "silver  skin."  In  Brazil  there  is  a 
very  rare  variety  known  as  Hybrico-coffee,  the  fruit  of  which  con- 
tains four  or  six  seeds. 

Picking. — Ripe  cherries  are  stripped  from  the  branches  by 
hand. 

187 


RETAIL   BUYING 

Preparation. — Both  the  dry  method  and  the  wet  method  are 
used. 

Dry  Method. — Fruit  is  allowed  to  dry  and  ferment.  May  be 
stored  and  the  hulling  done  at  some  future  time. 

Wet  Method. — Fruit  dumped  in  large  tanks  of  water.  Ripe 
cherries  sink  to  the  bottom,  while  unripe  and  bad  fruit  float  on 
surface.  Ripe  cherries  are  carried  from  tanks,  by  means  of  pipes, 
to  pulping-machine. 

Pulping. — Cherries  are  reduced  to  a  pulp  by  a  revolving  cyhnder. 
This  mixture  is  conveyed  to  water-vats,  where  seed  sink  and  the 
pulp  rises  to  the  top. 

Fermentation. — Seed  are  allowed  to  ferment  for  forty -eight 
hours. 

Washing. 

Drying. 

Peeling  and  winnowing. — ^A  simple  rubbing  process  gets  rid  of 
the  silver  skin. 

Sizing. — To  secure  uniformity  in  size. 

Examining. — Taking  out  any  defective  seed. 

Packing. 

Shipping. 

Roasting. 

Glazing. 

Blending. 

Grinding. 

The  stimulating  and  refreshing  action  of  coffee  is  mainly  due  to 
the  presence  of  cafifeine  and  volatile  oil. 


Chicory 

Chicory  is  prepared  from  the  fleshy  roots  of  Cichorium  intybus, 
a  plant  closely  resemblinj^  lettuce,  and  found  wild  throughout 
Europe,  North  Africa,  Siberia,  and  Northern  India.  Up  to  the 
European  War  the  great  bulk  of  the  present  day  came  from  Belgium. 

A  simple  test  whereby  to  detect  the  presence  of  chicory  when 
mixed  with  ground  coffee  is  to  put  a  httle  of  the  ground  material 
in  a  glass  of  water.  Coffee  remains  hard  and  floats  on  the  surface 
for  a  long  time;  chicory  soon  softens  and  sinks,  coloring  the  water 
more  or  less  brown. 

Other  substitutes  found  in  coffee. — These  vary  much,  including 

188 


INSTRUCTION   TO    SALESPEOPLE 

cereals,  sawdust,  bark,  cacao  husks,  acoms,  figs,  lupine,  peas, 
beans,  and  even  baked  liver. 


Tea 

Tea  is  prepared  from  the  young  leaves  of  the  tea  plant,  Camelia 
thea. 

Introduced  from  China  about  1657.  Produced  by  India,  China, 
Ceylon,  Japan,  and  Java. 

The  leaves  are  picked  from  the  plant  about  AprU  1st.  The 
leaf -buds  are  just  beginning  to  form.  This  first  picking  produces 
the  finest  quaUty  of  tea.  The  leaves  are  picked  every  three  weeks 
for,  possibly,  four  pickings.  The  last  picking  produces  poor  quaUty 
of  tea. 

Green  and  black  tea  may  be  produced  from  the  same  plant. 

Green  tea. — The  leaves  are  cured  as  soon  as  plucked,  while  green. 

Black  tea. — The  leaves  are  allowed  to  wilt  and  ferment  before 
curing. 

Method  of  ciiring. — The  tea-leaves  are  placed  in  shallow,  cir- 
cular pans  and  placed  in  ovens.  The  heat  causes  the  leaves  to 
crack  and  become  moist.  The  leaves  are  placed  on  bamboo  tables 
in  this  pliable  condition.  Men  rub  the  leaves  between  their  hands, 
as  a  baker  would  work  dough.     Moisture  is  pressed  out. 

Baked. — The  leaves  are  baked.  This  causes  the  leaves  to  lose 
moisture,  to  twist  and  curl. 

Sorting. 

Packing. 

Coal 

Facts  a  salesman  should  know  about  anthracite  coal: 

The  best  grade  of  anthracite  contains  about  91  per  cent,  carbon 
and  4  per  cent,  volatile  combustible  matter,  with  a  very  low  per- 
centage of  ash.  Burns  regularly  and  evenly  with  an  intense  heat. 
It  is  bright,  clean,  well  prepared  over  roUer  screens,  and  free  from 
slate  and  stone.    It  comes  in  the  following  sizes: 

Egg  and  stove  are  used  in  large,  hot-air  and  hot- water  or  steam 
furnaces,  and  with  pea  coal  for  banking. 

Stove  coal  is  excellent  for  smaller  furnaces,  used  with  buck- 
wheat for  banking. 

Stove  and  nut  or  nut  alone  is  used  in  magazine  stoves. 

189 


RETAIL    BUYING 

Pea  coal  is  excellent  for  ranges  and  little  heaters,  but  requires 
lots  of  draught  on  account  of  gas. 

Hard  coal  is  cheapest  in  April,  and  the  price  raises  ten  cents  per 
month  for  five  consecutive  months. 


Sources  of  Information  on  Merchandise 

The  following  list  of  publications,  issued  b.y  manufacturers,  shows 
the  kind  of  descriptive  material  wliich  can  be  obtained  by  the  buyer: 

Books. — The  Story  of  the  Making  of  a  Book.  Charles  Scribner's 
Sons,  New  York  City. 

Pencils. — Pencil  Geography.  Joseph  Dixon  Crucible  Company, 
Jersey  City,  N.  J. 

Linoleum. — As  Told  in  the  Store.  Armstrong  Cork  Company, 
Pittsburgh,  Pa. 

Wool  and  Cotton. — Textiles,  by  Paul  H.  Nystrom.  D.  Appleton 
&Co. 

Leather. — The  History  of  Tanning.  Pfister  &  Vogel  Leather 
Co.,  Milwaukee,  Wis. 

Rubber. — Rubber  from  Forest  to  Foot.  United  States  Rubber 
Company,  Fifty-eighth  Street  and  Broadway,  New  York  City. 

Plate  Glass. — The  Making  of  Plate  Glass.  Pittsburgh  Plate  Glass 
Company,  Pittsburgh,  Pa. 

Flour. — The  Wheat  and  Flour  Primer.  Washbum-Crosby  Com- 
pany, Minneapohs,  Minn. 

Soap. — The  Larkin  Idea;  Its  Home.  Larkin  Company,  Buffalo, 
N.  Y. 

Sugar. — Some  Intei'esting  Facts  About  Sugar.  American  Sugar 
Refining  Company,  117  Wall  Street,  New  York  City. 

Tapioca. — The  Story  of  Tapioca.  Minute  Tapioca  Company, 
Orange,  Mass. 

Soups. — Franco- American  Soups;  How  They  Are  Made  in  a 
Model  Establishment.  Franco-American  Food  Company,  Jersey 
City  Heights,  N.  J. 

Fish. — Bureau  of  Chemistrj^  Wasliington,  D.  C. 

Binder  Twine  Industry.  The  Story  of  Bread.  Harvest  Scenes 
of  the  Woj-ld.  International  Harvester  Company,  Harvester  Build- 
ing, Chicago,  111. 

The  Man  Who  Didn't  Know  When  He  Had  Failed,  Carbonmdum 
Company,  Niagara  Falls,  N.  Y. 

190 


INSTRUCTION    TO    SALESPEOPLE 

Cork;  Being  the  Story  of  the  Origin  of  Cork.  Armstrong  Cork 
Company,  Pittsbiu-gh,  Pa. 

Pictures  of  Cotton  and  Woolen  Manufacturing.  Chamber  of 
Commerce,  Manchester,  N.  H. 

Preparation  of  the  Cod  and  OtJier  Salt  Fish  for  the  Market.  Bm"eau 
of  Chemistrj^,  Washington,  D.  C. 

Hemp,  by  Lyster  H.  Dewey.  Department  of  Agriculture, 
Washington,  D.  C. 

Linen,  Jute,  and  Hemp  Industries  in  the  United  Kingdom.  Bureau 
of  Foreign  and  Domestic  Commerce,  Wasliington,  D.  C. 

Lumber.  The  Pine  Cone.  1014  Germania  Life  Building,  St. 
Paul,  Minn. 

The  Making  of  a  Great  Newspaper.     New  York  World,  New  York. 

Potash  Lndustry.  German  Kali  Works,  McCormick  Building, 
Chicago,  III. 

Rice  and  Rice  Cookery,  by  Miriam  Birdsej^e.  The  Rice  Millers' 
Association,  Room  209,  Kyle  Building,  Beamnont,  Texas. 

Salmon  Data.     Salmon  Canners'  Association,  Seattle,  Wash. 

The  Silk  Industry:  from  the  Worm  to  the  Wearer.  M.  Heminway 
&  Sons  Silk  Co.,  890  Broadway,  New  York  City. 

Silk;  Its  Origin,  Culture,  and  Manufacture.  Corticelli  Silk  Mills, 
Florence,  Mass. 

Sugar-cane  and  Syrup-making.  Agricultural  Experiment  Station, 
Gainesville,  Fla. 

History  of  Tanning.  Pfister  &  Vogel  Leather  Co.,  Milwaukee, 
Wis. 

Vanilla.  Joseph  Burnett  Company,  36  India  Street,  Boston, 
Mass. 


XIV 


CO-OPERATION  IN   ADVERTISING   AND   DISPLAYS 

The  Buyer's  Responsibility  in  the  Advertising.  Adver- 
tising is  a  direct  appeal  to  the  public — a  method  used  to 
create  public  sentiment  favorable  to  a  retail  store,  to  draw 
trade  to  the  store,  and  to  make  customers  of  it  as  well  as 
satisfied  purchasers.  For  the  purpose  of  having  the  respon- 
sibility of  this  work  rest  upon  one  individual,  an  advertising- 
manager  is  usually  engaged.  But  of  course  there  are  many 
thousands  of  small  stores  where  the  advertising  is  handled 
by  the  proprietor  or  manager,  and  most  frequently  by  the 
person  who  does  the  buying. 

Whether  a  store  has  an  advertising-man  or  not,  the  buyers 
should  be  able  to  write  clear,  concise,  and  convincing  descrip- 
tions of  the  various  lines  they  buy.  In  a  large  store  having 
several  buyers  each  should  co-operate  with  the  advertising- 
man  in  the  writing  of  copy  for  advertising  their  particular 
lines.  In  its  last  analysis,  the  buyer  is  closer  to  the  product 
which  he  buys  than  any  one  else  in  the  store.  For  this  reason 
he  can  readily  furnish  the  advertising-man  with  the  talking- 
points  of  his  merchandise  with  this  viewpoint  in  mind.  Thus 
his  help  proves  of  inestimable  value  to  the  advertising-man 
who  works  the  material  over  and  writes  it  up  according  to 
the  accepted  principles  of  good  advertising  copy. 

The    Advertising-man's    Responsibility   to    the    Buyer. 

Likewise  there  is  an  obligation  on  the  part  of  the  advertising- 

192 


CO-OPERATION  IN  ADVERTISING  AND  DISPLAYS 

manager  to  reciprocate.  He  should  take  the  buyers  of  the 
store  into  his  confidence  and  enlighten  them  on  the  store's 
advertising  appropriation  and  what  disposition  is  to  be  made 
of  it.  He  should  explain  the  reasons  for  using  certain  medi- 
ums, and,  in  fact,  give  the  buyers  a  liberal  education  in  the 
store's  advertising  methods.  Where  such  a  spirit  of  co- 
operation exists  little  friction  will  arise  between  the  buying 
and  selling  ends  of  the  business.  There  will  be  a  sympathetic 
attitude  to  take  its  place.  Th'C  buyer  will  know  the  nature 
of  the  advertising-man's  problems,  and  vice  versa. 

It  is  not  feasible  to  attempt  in  this  volume  a  discussion 
of  the  principles  of  advertising,  for  the  subject  requires  a 
full  volume  elsewhere  in  this  series.  The  author  must  there- 
fore be  content  with  this  brief  discussion  of  the  necessity 
that  the  buyer  should  be  familiar  with  the  fundamentals 
of  the  subject,  and  thus  be  able  to  write  simple  copy,  as  a 
basis  of  the  advertising-manager's  work,  or  for  actual  use 
in  case  there  is  no  one  on  the  store's  force  assigned  to  the 
advertising. 

Co-operation  in  Display  Work.  In  the  case  of  the  in- 
terior and  window  displays  the  relation  of  the  buyer  is  even 
more  close,  and  consequently  many  stores  which  have  a 
separate  executive  for  the  publicity  work  depend  upon  the 
one  who  buys  each  line  of  goods,  with  his  clerks,  to  see  to  the 
displays.  Fortunately  the  subject  is  not  so  intricate  as  ad- 
vertising, so  that  it  may  be  more  readily  learned  by  one  who 
knows  merchandise  and  merchandizing.  Consequently  it 
has  seemed  to  the  author  feasible  to  cover  the  general  prin- 
ciples in  this  chapter,  both  from  the  standpoint  of  co-opera- 
tion with  the  display-manager,  or  "window-trimmer,"  as 
he  is  more  commonly  called,  and  from  that  of  display  work 
on  the  part  of  the  buyer  who  must  look  after  his  own  dis- 
plays with  the  assistance  of  his  clerks. 

The  Value  of  Good  Displays.  The  old  adage,  "Goods 
13  193 


RETAIL    BUYING 

well  displayed  are  half  sold,"  has  certainly  been  proved  time 
and  again  by  the  department-store  system.  Every  student 
of  business  appreciates  that  suggestion  plays  a  very  important 
part  in  the  scheme  of  merchandizing.  How  many  times  have 
you  gone  shopping,  with  a  single  purchase  in  mind,  and  re- 
turned with  a  number  of  purchases?  The  commodity  needed 
may  have  been  coffee,  but  you  found  fresh  fruit,  cheese, 
or  coojkies  so  attractively  displayed  that  your  mouth  watered 
for  a  taste  of  them.  Consequently  additional  purchases  were 
made.  This  merchandise  may  have  been  displayed  in  either 
the  windows  or  in  the  interior  of  the  store. 

The  windows,  the  more  important  of  the  two,  are  used, 
with  the  assistance  of  advertising,  to  draw  the  people  into 
the  store.  They  provide  the  first  impression  which  the  store 
makes  upon  the  public.  For  this  reason  they  must  bespeak 
the  character  and  policies  of  the  men  at  the  head  of  the  es- 
tablishment, as  well  as  the  quality  and  character  of  the  mer- 
chandise to  be  seen  in  the  interior  of  the  store.  These  win- 
dows work  both  night  and  day,  attracting  the  attention  of 
old  and  new  customers  and  sometimes  creating  a  desire  for 
the  merchandise,  thus  performing  the  first  two  steps  of  the 
sale.  They  make  it  possible  for  the  salespeople  on  the  inside 
of  the  store  to  complete  the  sale  with  less  effort. 

The  right  buyer  is  an  inspiration  to  the  window-trimmer. 
In  fact,  they  work  together  on  an  equality  basis,  each  being 
capable  of  assisting  the  other.  The  buyer's  sympathetic  ear, 
together  with  his  timely  comments — most  buyers  having 
been  through  the  mill  and  been  advanced  step  by  step — 
do  much  to  develop  a  trimmer  and  to  get  the  most  out  of 
his  capabilities.  Buyers  have  the  opportunity  of  seeing  the 
best  displays  the  city  stores  have  to  offer,  and  these  ideas, 
together  with  ideas  for  displaying  the  various  kinds  of  mer- 
chandise purchased,  may  be  imparted  and  used  advantage- 
ously by  the  trimmer. 

194 


CO-OPERATION  IN  ADVERTISING  AND  DISPLAYS 

The  Trimmer.  The  wmdow-trimmer,  with  the  help  of 
the  buyer,  is  responsible  for  the  success  or  failure  of  the 
wiadows.  All  stores,  both  large  and  small,  should  have  some 
one  in  charge  of  the  windows.  The  larger  stores  can  afford  a 
display-manager  with  a  force  of  men  who  do  nothing  but  the 
actual  trimming  of  the  wmdows,  while  the  smaller  store  has 
usually  only  one  man  in  charge  of  the  displays.  If  this  is  not 
possible,  the  store  should  have  at  least  a  man  who  devotes 
part  time  and  who  receives  extra  pay  for  this  work,  as  trim- 
ming-work must,  as  a  rule,  be  done  evenings  after  the  store 
closes.  As  a  rule,  the  trimmer  is  a  very  sensitive  fellow  who 
will  work  his  head  off  if  given  the  proper  encouragement.  A 
little  flattery  and  encouragement  when  presenting  new  ideas, 
as  much  freedom  of  action  as  possible,  and  hberal  payment 
for  his  services  will  do  more  to  effect  successful  selling  windows 
than  anjrthing  else.  The  artistic  touch  is  required  of  the 
trimmer.  Some  develop  more  rapidly  than  others,  while  a 
few  seem  to  have  inherited  the  art.  Again,  some  men  will 
never  make  good  trimmers.  The  difference  between  the 
good  and  the  poor  trimmer  is  a  difference  of  dollars  and  cents 
in  business.  The  good  trimmer  is  an  asset  and  not  an  ex- 
pense, as  some  few  merchants  know  very  well. 

Value  of  Windows.  A  small  Kentucky  grocery-store 
values  its  windows  by  the  amount  of  merchandise  the  window 
sells,  both  direct  and  indirect.  This  store  claims  that  on 
one  particular  Saturday  the  window  sold  $90  worth  of 
oranges  at  60  cents  a  peck.  Consequently,  on  this  day  the 
window  was  worth  $90.  However,  only  $5  was  charged  to 
the  fruit  department,  that  being  the  Saturday  rate  per  win- 
dow, and  $3  for  week-days  and  Sunday.  Some  time  later 
this  same  store  made  a  strong  run  on  peaches.  They  were 
advertised  and  displayed  throughout  the  store,  but  no 
window  was  used,  as  the  store  was  remodeling  its  front.    To 

offset  this,  however,  the  entire  front  of  the  store  remained 

195 


RETAIL    BUYING 

open  during  the  day.  As  a  result  only  $2G  worth  of  the  fruit 
was  sold.  This  proved  to  this  particular  merchant  the  dol- 
lars-and-cents  value  of  his  windows,  and  showed  conclusively 
that  they  actually  brought  buyers  into  the  store. 

The  city  department  store,  as  well  as  all  other  systematized 
and  properly  managed  stores,  makes  use  of  some  such  sys- 
tem as  the  following:  A  certain  rental,  gauged  according  to 
the  size  and  location  of  the  window,  is  charged  to  each  depart- 
ment making  use  of  the  window  space,  this  amount  being 
credited  to  the  window-trimming  department  to  take  care  of 
the  salaries  of  trimmers,  cost  of  fixtures,  etc.  The  exact 
amount  charged  may  vary  according  to  the  size  of  the  town  or 
city,  the  clientele,  and  the  character  of  merchandise  handled. 
In  a  town  of  approximately  twenty  thousand  population 
the  rental  should  be  about  twenty  cents  per  foot  of  frontage 
a  day,  and  each  foot  should  sell  not  less  than  three  dollars' 
worth  of  merchandise,  by  both  direct  and  indirect  sales. 

The  actual  results  of  a  series  of  seven  displays  of  various 
kinds  of  merchandise  showed,  for  instance,  that  in  a  sale 
display  of  a  commodity  retailing  at  98  cents,  one  window  sold 
sixty-odd  dollars  during  the  first  day.  No  advertising  had 
been  done  to  herald  the  sale,  as  it  was  strictly  a  window  test. 
Of  course,  with  windows  planned  mainly  as  artistic  displays, 
and  particularly  at  spring  and  fall  openings  the  entire  value 
lies  in  the  indirect  sales  which  will  be  brought  about  through 
the  window. 

Artistic  Windows  vs.  Merchandizing  Windows.  The 
windows  of  the  store  were  intended  primarily  for  the  ex- 
ploitation of  merchandise,  the  fundamental  purpose  being  to 
attract  attention  to  the  merchandise  shown  and  to  assist 
in  effecting  a  sale.  Some  thirt}^  or  forty  years  ago,  Mar- 
shall Field  &  Co.,  in  order  to  further  the  Field  idea  of 
merchandizing,  began  a  system  of  artistic  and  spectacular 

window-trimming.    This  idea,  in  a  much  smaller  way,  was 

196 


CO-OPERATION  IN  ADVERTISING  AND  DISPLAYS 

taken  up  by  stores  over  the  entire  country,  many  losing  sight 
of  the  fact  that  theirs  was  entirely  a  different  type  of  store. 

The  larger  New  York  City  stores  have  been  known  to 
have  curtains  drawn  on  windows  a  full  week,  making  prep- 
arations for  opening  windows.  When  the  curtains  are 
finally  raised,  beautiful  windows,  which  attract  much  at- 
tention, are  disclosed.  In  many  cases,  however,  the  back- 
grounds, fixtures,  and  general  atmosphere  overshadow  the 
merchandise  shown.  Stores  catering  to  the  masses,  as  well 
as  those  catering  to  the  most  exclusive  trade,  have  been 
guilty  of  this  act  A  question  undecided  is  whether  or  not 
the  little  merchandise  shown  makes  the  display  worth  while. 
It  is  true  that  well-known  authorities  have  agTeed  that 
artistic  windows  are  permissible  during  fall  or  spring  open- 
ings, but  enough  merchandise  should  always  be  shown  so 
that  the  prospective  customer  can  get  the  idea  that  the 
window  was  put  in  for  the  purpose  of  attracting  attention 
to  the  merchandise. 

Strictly  merchandizing  windows,  although  artistic  and 
attractive  in  arrangement,  should  be  featured  at  all  times 
by  the  stores  catering  to  the  general  public.  This  idea 
should  also  be  uppermost  in  mind  with  those  stores  catering 
to  the  most  exclusive  trade.  Customers,  as  a  rule,  are  more 
interested  in  merchandise  than  in  artistic  displays. 

Backgrounds.  The  background  or  setting  is  used  to  em- 
phasize the  merchandise.  It  should  always  be  in  harmony 
with  the  merchandise  shown  as  well  as  with  the  proportions 
of  the  window  in  which  it  is  placed,  and  it  should  be  planned 
with  the  idea  of  contributing  value  to  what  is  shown  in  con- 
nection with  it.  The  height  should  be  from  six  to  ten  feet, 
depending  upon  the  height  of  the  ceiling  and  the  size  of  the 
window.  High  ceilings  should  always  be  used  wherever 
possible.     Very  elaborate  backgrounds  frequently  detract 

from  the  sale  value  of  the  displayed  merchandise. 

197 


RETAIL    BUYING 

There  are  three  classes  of  backgrounds:  permanent,  tem- 
porary, and  individual.  The  permanent  background  consists 
of  hardwood,  panel-wood,  and  mirrors.  Hardwood  and 
panel-wood  are  considered  best  They  frequently  appeal 
strongly  to  the  management  on  the  score  of  readiness  and 
economy,  and  they  may  also  be  covered  readily  for  special 
displays.  The  colors  and  woods  used  are  oak,  natural  and 
stained  in  dark  brown,  dark  green,  dark  gray,  and  weathered 
oak;  mahogany,  walnut,  cherry,  maple,  stained  in  light 
gray;  and  white  enamel.  Any  of  these  may  be  finished  in 
plain,  mission,  or  colonial  style. 

Mirrored  backgrounds  have  been  used  a  great  deal  in  the 
past,  but  many  well-informed  merchandizing  men  agree  that 
they  are  undesirable.  In  using  mirrors  it  is  almost  impossible 
to  get  the  desired  emphasis  on  any  article.  There  is  a  con- 
flict for  the  onlooker's  attention  between  the  merchandise 
shown  and  the  reflections  from  passing  people  and  objects 
which  appear  in  the  mirror. 

Temporary  backgrounds  may  be  covered  with  any  fabric 
from  burlap  to  velvet,  pleated  and  puffed  cheese-cloth  and 
tarlatan,  cotton  flannel,  serpentine  crepe,  silk,  satin,  plush, 
velours,  scenic  effects  on  sized  canvas,  or  domestic  masonry 
effects,  latticework,  etc.  It  may  be  either  a  painted  scene, 
an  imitation  of  nature,  or  an  ordinary  covering  for  the  back 
of  the  window.  White  goods  require  a  dark  backing,  and 
dark  goods  require  a  light  background.  Of  course  there  are 
exceptions.  Pure  white  goods  are  often  shown  very  effec- 
tively with  an  ivory  or  a  delicately  tinted  background. 

Individual  backgrounds  are  special  backgrounds  required 
for  special  occasions — a  certain  type  of  background  which 
is  required  to  bring  out  the  desirable  points  and  uses  of  the 
merchandise. 

Floorings.     The  floor  of  the  window  should  be  about 

fifteen  inches  above  the  level  of  the  sidewalk,  and  should 

198 


CO-OPERATION  IN  ADVERTISING  AND  DISPLAYS 

correspond  to  the  background  and  the  display.  They  may 
be  classed  and  treated  just  as  backgrounds — namely,  per- 
manent, temporary,  and  individual. 

Amount  of  Merchandise  to  Be  Shown.  One  of  the  most 
interesting  and  puzzling  subjects  in  window-trimming  is  the 
amount  of  merchandise  which  should  be  shown  in  a  window. 
Every  store,  both  large  and  small,  seems  to  take  a  most 
definite  stand  with  regard  to  the  subject.  One  makes  a  prac- 
tice of  showing  the  least  possible  amount  of  merchandise,  ad- 
vocating that  the  entire  attention  of  the  passers-by  will  be 
held  and  that  the  pedestrians  will  be  enabled  to  take  in  the 
entire  window  at  a  glance.  When  the  clientele  of  the  store  is 
better  appealed  to  by  such  a  display  it  undoubtedly  proves 
effective,  but  in  most  cases  it  is  a  useless  waste  of  window 
space. 

A  second  type  of  store  makes  a  practice  of  showing  only 
decorative  windows.  The  backgrounds  are  the  most  artistic 
to  be  had,  and  only  the  higher-class  merchandise  is  shown. 
A  display  of  this  sort  can  be  used  very  advantageously 
during  the  spring  and  fall  openings,  and  then  only  for  a  few 
days.  Critics  contend  that  the  decorations  overshadow  the 
merchandise. 

A  third  store  makes  a  practice  of  showing  all  the  mer- 
chandise it  is  possible  to  crowd  into  the  window.  In  fact, 
many  stores  of  this  class  have  two-thirds  of  their  stock  in 
the  window.  The  result  is  that  the  entire  display  presents 
a  jumbled  mass,  totally  lacking  in  character  and  effective- 
ness. There  is  so  much  merchandise  displayed  that  no  at- 
tention can  be  given  to  any  particular  object.  The  idea  of 
the  display  is,  of  course,  to  convey  the  idea  to  the  prospective 
customer  that  a  varied  selection  and  an  unlimited  amount  of 
stock  are  obtainable.  This  type  of  display  is  a  much  poorer 
form  of  merchandizing  than  that  of  the  first  store  described, 

and  is  fortunately  becommg  more  rare  each  year. 

199 


RETAIL    BUYING 

The  fourth  type  of  store  uses  ideal  merchandizing  methods. 
This  ideal  is  the  "happy  medium"  of  the  first  two  types  of 
displays  mentioned.  Clean,  neat  displays,  with  just  enough 
fresh,  crisp  merchandise  to  allow  the  passers-by  to  take  it  in 
while  passing,  are  shown.  The  idea  is  to  make  more  frequent 
changes  and  get  the  public  into  the  habit  of  looking  for  the 
newer  goods.  Such  a  type  of  window  display  will  sell  more 
merchandise  than  all  of  the  others  put  together,  and  is 
much  more  attractive  from  a  business  standpoint. 

However,  after  all,  most  stores  use  those  methods  pre- 
ferred by  their  responsible  officials,  who  are  governed  by 
their  personal  opinions.  These  officials  may  be  totally  lack- 
ing in  experience  and  have  absolutely  no  knowledge  of  what 
type  of  windows  are  best  suited  to  the  needs  of  the  store, 
but,  nevertheless,  whatever  they  dictate  is  carried  into  efi'ect. 

Purpose  of  the  Display.  Each  display  should  have  a  real 
purpose  which  suggests  an  idea  to  the  one  w^ho  is  viewing  the 
display.  For  example,  in  the  showmg  of  a  traveling-bag, 
traveling  accessories  and  articles  usually  carried  when  travel- 
ing should  be  shown.  Every  one  likes  to  travel.  Conse- 
quently, all  passers-by  will  give  their  attention  to  the  display. 
The  traveling-bag,  with  its  artistically  arranged  group  of 
shirts,  pajamas,  socks,  and  the  like,  brings  to  the  mind  of  the 
prospect  the  desire  for  some  of  the  articles  shown.  The  display 
points  out  that  they  would  be  needed  on  the  anticipated  trip. 

Good  merchandizers  can  well  make  one  commodity  sug- 
gest the  sale  of  another.  In  fact,  some  cases  develop  in  the 
sale  of  complete  outfits.  All  persons  have  that  desire  to 
possess.  Clever  salesmanship  exhibited  either  by  salespeople 
or  in  the  displaying  of  merchandise  does  much  to  bring  out 
this  instinct. 

Selection  of  Merchandise  to  Be  Shown.  There  are,  how- 
ever, certain  kinds  of  merchandise  which  cannot  be  shown 

together.    For  instance,  imagine  a  saw  being  sho\\Ti  with  a 

200 


CO-OPERATION  IN  ADVERTISING  AND  DISPLAYS 

head  of  cabbage,  lard  with  candy,  garden  tools  with  party 
dresses,  or  heavy  canvas  with  delicate  chiffons.  Cabbage 
would  go  well  with  other  fresh  vegetables,  lard  would  increase 
the  value  of  a  display  of  flour,  meats,  or  other  fats.  Garden 
tools  would  suggest  the  sale  of  lawn  furniture,  garden  seed, 
and  flower-pots.  Party  dresses  would  suggest  silk  hosiery, 
gloves,  head-dressings,  evening  slippers,  and  opera  coats.  In 
fact,  any  commodity  can  be  displayed  well  with  another, 
provided  they  are  used  together,  of  the  same  class,  one  sug- 
gesting the  use  of  the  other. 

Color  Harmony.  In  executing  a  trim,  coloring  is  one  of 
the  principal  subjects  to  be  considered.  Any  person  is  capable 
of  piling  a  jumbled  mass  of  colors  into  a  window,  with  one 
killing  the  other.  But  an  expert  is  required  to  trim  a  window 
so  that  each  color  stands  out,  one  helping  to  bring  out  the 
other,  and  all  blendmg  together  into  a  harmonious  whole. 
The  principles  applied  by  the  painter  when  painting  a 
picture  are  used  by  the  skilled  window-trimmer.  Each 
piece  used  is  handled  as  a  part  of  the  whole  scheme. 
There  must  be  something  which  binds  each  decorative  unit 
into  a  systematic  whole. 

It  is  said  that  nature  suggests  excellent  color  combinations 
and  contrasts.  For  example,  a  border  of  the  green  of  the 
apple  and  peach  will  add  materially  to  the  appearance  of  the 
display.  Spring  calls  for  the  cooler  colors — white,  black, 
gray,  lavender,  blue,  etc.;  while  the  fall  and  winter  seasons 
require  the  warmer  colors — brown,  red,  cream,  yellow,  etc. 

The  following  chart  and  color  effects  have  been  arranged 
with  the  idea  of  aiding  the  trimmer  in  making  combinations : 

Color  Combinations 
Gray  Display — 

Pale  blue,  laurel  green,  heliotrope,  old  rose,  pale  green,  orange, 
pink,  wistaria,  apricot,  raspberry,  and  all  shades  of  yellow. 
201 


RETAIL    BUYING 

Brown  Display — 

Cream,  corn  color,  light  yellow,  ivory,  maize,  dark  yellow, 
burnt  orange,  straw,  champagne,  peach,  muskmclon,  apricot, 
salmon  pink,  lemon,  green,  apple  green,  coral,  old  rose,  helio- 
trope, amber,  amethyst,  emerald,  topaz,  turquoise,  and  any 
shade  from  cream  to  burnt  orange. 

Moss-Green  Display — 

Pp-le  green,  sulphur,  pale  pink,  apricot,  pale  blue,  heliotrope, 
old  rose,  salmon  pink,  black-and-white  novelties,  any  of  the 
jewel  series  (which  are  amber,  amethyst,  emerald,  coral, 
turquoise,  and  topaz),  any  shade  from  cream  to  burnt  orange, 
and  any  shade  from  champagne  to  muskmelon. 

Navy-Blue  Display — 

Bright  red,  old  rose,  Nile  green,  pale  blue,  white,  cream,  ivory, 
pale  yellow,  hght  yellow,  orange,  burnt  orange,  black-and- 
white  novelties,  any  shade  from  cream  to  burnt  orange,  and 
any  shade  from  champagne  to  muskmelon. 

Red  Display — 

Red  in  combinations  of  two  or  three  different  shades,  white, 
cream,  black,  gold,  silver,  yellow,  dark  green,  violet,  chestnut, 
gray,  pink,  purple,  copper,  and  russet. 

Purple  Display — 

Purple  in  combinations  of  two  or  three  different  shades,  white, 
cream,  gold,  orange,  dark  red,  and  dark  green. 

Black  Display — 

Yellow,  pale  blue,  apricot,  emerald,  raspberry,  turquoise, 
heliotrope,  orange,  gray,  gold,  bro^^^l,  red,  chestnut,  copper, 
and  olive  green. 

Tan  Display — 

Salmon  pink,  pale  blue,  pale  green,  apple  green,  hght  green, 
old  rose,  heliotrope,  white,  lavender,  yellow,  turquoise,  and 
dash  of  black. 

Pink  Display — 

White,  yellow,  light  blue,  tan,  brown,  Nile  green,  lavender, 
citron,  gray,  purple,  and  dark  red. 

202 


CO-OPERATION  IN  ADVERTISING  AND  DISPLAYS 


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203 


RETAIL    BUYING 

Yellow  Displmj — 

White,  light  blue,  violet,  pink,  buff,  Copenhagen,  dove,  gray, 
copper,  brown,  dark  purple,  dark  green,  red,  chestnut,  and  black. 

Orange  Display — 

White,  gray,  blue,  olive,  russet,  purple,  red,  maroon,  green, 
and  black. 

Olive  Display — 

White,  blue,  orange,  green,  red,  and  black. 

Violet  Display — 

Purple,  red,  buff,  yellow,  white,  blue,  dark  green,  and  black. 

White  Display — 

Dove,  gold,  drab,  buff,  pea  green,  yellow,  pink,  orange,  and  blue. 

Light-Blue  Display — 

Light  green,  pink,  gray,  golden  brown,  dark  orange,  and  black. 

Buff  Display — 

White,  clay,  yellow,  orange,  violet,  brown,  and  red. 

Russet  Display — 

White,  yellow,  violet,  orange,  red,  and  brown. 

Maroon  Display — 

Orange  and  brown. 

Chestnut  Display — 

Yellow,  red,  and  black. 

Chocolate  Display — 

Black,  red,  and  all  shades  of  brown. 

Citron  Display — 

White,  buff,  yellow,  and  orange. 

Copper  Display — 

Yellow,  red,  and  black. 
Drab  Display — 

White,  vellow,  red,  and  black. 

204 


CO-OPERATION  IN  ADVERTISING  AND  DISPLAYS 

Dove  Display — 

White,  yellow,  vermilion,  and  blue. 

Lavender  Display — 

Tan,  gray,  and  purple. 

Color  Effects 

Place  light  colors  at  the  back  of  the  window,  and  dark  colors  at 
the  front. 

Bright  and  loud  colors  should  be  separated  from  one  another  by 
a  neutral  color. 

Neutral  colors  are  white,  cream,  light  tan,  gray,  moss  green, 
and  black. 

Two-color  Combinations  foe  Ribbons 

Pink  and  heliotrope. 
Pale  blue  and  pale  green. 
Salmon  pink  and  brown. 
Pale  blue  and  dark  blue, 
Violet  and  purple. 
Pale  pink  and  pale  blue. 
Champagne  and  muskmelon. 
Pale  pink  and  pale  yellow. 
Yellow  and  orange. 
Rusty  brown  and  apricot. 
HeUotrope  and  plum. 
Old  rose  and  pale  gray. 
Pale  blue  and  heliotrope. 
Pale  blue  and  lavender. 
Any  one  color  in  two  shades. 

Three-color  Combinations  for  Ribbons 

Champagne,  apricot,  and  rusty  brown. 
Pale  pink,  pale  blue,  and  pale  green. 
Pale  yellow,  pale  green,  and  pale  blue. 
Light  yellow,  cream,  and  orange. 
Salmon  pink,  apricot,  and  muskmelon. 
Old  rose,  heUotrope,  and  pale  blue. 

205 


RETAIL    BUYING 

Pale  pink,  heliotrope,  and  pale  blue. 
Pale  blue,  p;reen,  and  heliotrope. 

Any  one  color  in  three  shades.  Gold,  silver,  and  black  will 
harmonize  with  any  color  or  combination  of  colors. 

Time.  Displays  are  usually  regulated  according  to  seasons 
or  the  demand  for  merchandise.  As  a  rule,  there  is  a  time 
to  show  all  classes  of  merchandise,  and  when  this  time  is  past 
no  amount  of  beautiful  displays  or  price-cutting  will  move 
it.  During  the  fall  of  1916  a  large  store  made  a  clever 
buy  consisting  of  five  gross  of  mince-meat  choppers.  A  large 
window  was  used  to  display  the  commodity.  Well-worded 
cards  were  used,  together  with  a  fair  amount  of  newspaper 
space,  to  advertise  the  special  price.  The  display  was  left 
in  the  window  four  days,  and  but  two  of  the  choppers  sold. 
After  returning  the  goods  to  its  proper  department,  samples 
were  ordered  left  on  the  comiter,  so  that  there  could  be  no 
chance  of  a  customer  going  without  one  had  she  intended 
making  the  purchase.  Four  weeks  later,  six  days  before 
Thanksgiving,  the  choppers  began  selling,  and  during  the 
following  three  weeks  practically  all  were  sold.  The  display 
had  been  made  out  of  season,  and  as  a  result  the  merchandise 
did  not  sell  when  displayed  or  advertised.  It  was  fortunate, 
of  course,  that  the  showing  was  just  before  Thanksgiving 
instead  of  just  after  Christmas,  because  in  that  case  the  goods 
would  no  doubt  have  been  carried  over  into  the  next  season. 

For  the  benefit  of  those  concerned  the  following  chart 
has  been  prepared: 

January.       Januaiy  clearance  sale. 

January  white-goods  sale. 

(Push  ready-to-wear  and  work  sales  for  all  they  will 
produce.) 
February.     Valentine's  Day  (February  14th). 

Washington's  Birthday  (Februarj^  22d). 
(Make  preparations  for  the  showing  of  spring  mer- 
chandise.) 

206 


CO-OPERATION  IN  ADVERTISING  AND  DISPLAYS 


March.         St.  Patrick's  Day. 

Spring  opening  (March  15th,  or  about  three  weeks 
before  Easter). 
April.  Easter. 

First  spring  clearance  sales. 

(Introduce  garden  and  lawn  commodities,  household 
goods,  etc.) 
May.  May  Day  (May  1st). 

Memorial  Day  (May  30th). 

(Furniture,  upholstery,  glassware,  and  sporting  goods 
are  in  active  demand.     Summer  goods  need  en- 
couragement.) 
June.  Graduation. 

June  weddings. 

June  wliite  sales  (push  sunomer  goods). 
July.  July  4th. 

Hot-weather  sales. 

(Trunks,  bags,  and  traveling  accessories  need  atten- 
tion.    Summer  reduction  sales  begin.) 
August.         Vacation  sale. 
Traveler's  sale. 

(Summer  sales  are  in  order.    Prepare  for  fall  goods; 
introduce  novelties.) 
September.  Fall  opening  (September  15th  to  30th). 
Labor  Day. 

(Specialize  on  children's  goods  for  school.    Ready-to- 
wear  and  millinery  need  much  attention.     Hammer 
housefurnishings.) 
October.        Hallowe'en. 

Harvest  sales. 

(Work  piece-goods  department.     Keep  ready-to-wear 
to  the  front.) 
November.  Thanksgiving  (last  Thursdaj^  in  month). 

(Introduce   holiday   goods.    Give   chinaware,   linens, 
and  cutlery  preference.) 
December.    Christmas. 
New  Year's, 

(Give  holiday  goods  full  swing.     Push  hosiery,  neck- 
wear, and  handkerchiefs.     Hammer  on  expensive 
furs  and  ready-to-wear  goods.) 
207 


RETAIL    BUYING 

In  villages  and  small  cities,  during  the  afternoon,  the 
streets  are  crowded  with  busy  shoppers  who  are  anxiously 
taking  in  all  the  windows  in  hope  of  finding  just  what  they 
need.  The  evening  is  given  over  to  strolling  and  sight-seeing. 
Every  one  likes  to  wander  around,  looking  into  every  shop 
window,  taking  in  all  the  new  things.  For  these  reasons 
no  window  should  be  dark  during  the  afternoon  or  evening. 
All  trimming  should  be  done  in  the  early  forenoon.  A  trim- 
mer can  work  at  greater  ease  at  that  time,  because  there  are 
fewer  opportunities  for  interruption  and  there  is  less  hke- 
lihood  of  losing  business  because  of  drawn  shades. 

Fixtures.  Modern  display  fixtures  are  equally  as  im- 
portant as  up-to-date  selling  equipment  in  the  store.  No 
one  denies  that  proper  equipment  in  the  store  means  economy, 
for  it  helps  the  salespeople  to  serve  more  trade  in  a  given 
time,  and  at  the  same  time  gives  the  customer  more  time 
to  spend  looking  over  the  various  stocks  of  the  store.  No 
merchant  cares,  however,  to  be  continually  spending  money 
for  fixtures.  By  purchasing  standard  fixtures  at  the  be- 
ginning, and  taking  proper  care  of  them  as  well  as  al- 
lowing a  small  amount  each  year  for  the  purchase  of 
additional  equipment,  a  full  supply  of  the  best  fixtures 
will  continually  be  on  hand.  Many  trimmers  have  orig- 
inal ideas  with  regard  to  certain  kinds  of  fixtures  which 
will  produce  best  results.  It  is  also  possible  to  copy 
in  the  workshop  many  of  the  new-fad  fixtures  at  a  very 
small  cost. 

Interior  Displays.  The  windows  having  been  filled  with 
attractively  displaj^ed  merchandise,  the  idea  being  to  get 
the  customer  into  the  store,  it  is  absolutely  essential  to  back 
them  up  with  good  interior  displays  to  assist  the  salespeople 
in  making  sales.  Requirements  for  displays  do  not  call  for 
the  mere  placing  of  merchandise  on  counters,  or  in  display- 
cases,  without  consideration  of  their  arrangement.     Well- 

208 


CO-OPERATION  IN  ADVERTISING  AND  DISPLAYS 

planned  and  executed  displays  are  essential  to  modem  mer- 
chandizing methods. 

Special  displays  should  be  made  to  meet  each  store  festival. 
These  displays  are  equally  as  essential  as  a  new  dress  is  to 
the  blossoming  debutante.  The  display  should  be  carried 
out  in  keeping  with  the  season  and  in  harmony  with  the 
window  displays.  Numerous  clever  and  catchy  ideas  which 
will  attract  attention  may  be  carried  out  advantageously. 
For  example,  one  store  added  to  Christmas  decorations  of 
holly,  cedar,  and  redwood  rope  by  having  hundreds  of  red 
cardboard  birds  hanging  from  the  ceiling  by  silk  threads 
as  though  flying  through  the  air.  The  novelty  of  such  ideas, 
as  well  as  the  low  cost  of  executing,  makes  them  worth  while. 

Show-cards.  The  show-card  is  the  silent  salesman  which 
announces  to  the  public  or  directs  their  attention  to  the  mer- 
chandise shown.  It  is  necessary  to  every  window  as  well  as 
to  every  display  in  the  interior  of  the  store.  The  card  aids 
by  suggestive  selling  appeal.  It  saves  time  for  both  the  cus- 
tomer and  the  salesperson,  and  reduces  the  opportunity  for 
mistakes  by  announcing  the  sale  price.  The  more  carefully 
it  is  made,  and  neater  the  card,  the  better  it  makes  the  goods 
look  in  the  eyes  of  the  customer. 

Whether  or  not  the  price  is  to  be  shown  on  the  window- 
card  must  be  determined  by  the  character  of  the  store  and 
the  type  of  the  chentele.  The  price-card  would  be  a  detri- 
ment in  the  window,  during  regular  season,  of  an  exclusive 
store  catering  to  the  ^lite;  while  the  window  of  the  down- 
town store,  catering  to  the  working-girls'  trade,  would  not 
be  complete  unless  the  price-cards  were  in  a  most  conspicuous 
position.  As  a  general  thing,  windows,  other  than  special- 
sale  windows  and  windows  of  stores  catering  to  people  who 
deem  price  more  essential  than  quality,  should  not  have 
price-cards.    Style  and  quality  are  to  be  emphasized  in  the 

display  in  order  to  attract  enough  attention  to  cause  the 
14  209 


RETAIL   BUYING 

customer  to  come  into  the  store  to  investigate.  After  the 
customer  reaches  the  department  and  sees  the  commodity, 
and  the  salesperson  has  the  opportunity  of  talking  its  good 
points,  the  price  is  given.  Should  the  price  of  the  article 
be  too  high,  the  salesperson  has  the  opportunity  of  showing 
something  else.  Prices  should  always  be  shown  in  special- 
sale  windows,  regardless  of  the  kind  of  store. 


XV 

THE   BUYER   AS   A   MERCHANT 

The  Four  Functions  of  the  Buyer  as  a  Merchant.  The 
word  "buyer"  is  an  unfortunate  one  in  many  respects. 
Even  department-manager  isn't  much  better,  for  it  doesn't 
signify  all  the  position  requires,  and  names  have  a  psycho- 
logical effect.  If  a  man  is  known  as  a  buyer,  he  is  likely  to 
feel  his  job  is  buying  only  and  that  he  must  buy,  buy,  buy. 
As  a  matter  of  fact,  the  job  has  three  functions:  to  buy,  to 
sell,  and  to  make  a  satisfactory  profit.  The  training  and 
title  of  the  average  buyer  place  undue  emphasis  upon  the 
first  of  these  primary  functions,  the  selection  of  merchandise, 
and  depreciate  the  remaining  equally  important  duties. 

Now,  if  the  buyer  is  to  accomplish  these  three  functions 
he  must  be  a  full-fledged  merchant;  for,  after  all,  that  is  all 
the  merchant  does.  He  buys  and  sells  merchandise  so  as  to 
make  a  satisfactory  profit,  and  he  manipulates  his  stocks 
so  as  to  secure  the  proper  number  of  turnovers  and  leave 
the  stock  in  good  clean  condition  at  the  end  of  the  season. 
The  merchant  is  a  constructionist;  the  buj^er  is  an  oppor- 
tunist. The  trouble  with  many  mercantile  concerns,  both 
wholesale  and  retail,  is  that  they  have  too  many  buyers 
and  too  few  merchants. 

The  real  buyer  must  know: 

1.  How  to  sell  goods  himself. 

2.  How  to  handle  people. 

3.  How  to  plan  his  merchandizing. 

4.  How  to  buy. 

211 


RETAIL    BUYING 

The  Buyer  as  a  Salesman.  The  buyer  must  have  come  up 
through  the  sales  force  if  he  is  to  be  able  to  direct  the  sales 
activities  of  a  department.  No  man  can  tell  some  one  else 
how  to  do  a  thing  which  he  has  not  already  done  himself. 
That's  the  reason  that  in  all  successful  retail  houses  the 
officers  are  recruited  from  the  men  who  have  come  up 
through  the  ranks.  It  isn't  simply  because  they  have  borne 
the  heat  of  the  day  and  deserve  the  reward.  It  is  mainly 
due  to  the  fact  that  experience  is  a  necessary  qualification 
to  success  in  the  higher  positions.  And  in  no  work  is  it 
so  essential  as  in  that  of  retailing,  nor  is  there  any  line  in 
which  there  is  so  little  favoritism  to  relatives  and  so  much 
reward  for  ability  and  experience  as  in  retail  merchandizing. 
You  have  to  earn  the  job  before  you  can  earn  the  boss's 
daughter. 

The  Buyer  as  a  Sales-manager.  The  second  qualification 
is  the  ability  to  handle  salespeople ;  for  in  most  stores,  even 
those  having  aisle-managers  or  floor-walkers,  the  greater  part 
of  the  supervision  of  the  sales  force  falls  on  the  buyers.  The 
buyer  is  really  a  sales-manager  of  his  department,  and  as 
such  must  be  able  to  teach  and  to  lead  his  salespeople.  There 
are  some  people  in  this  world  who  have  natural  teaching 
ability.  They  seem  to  be  born  with  a  knack  for  explaining 
in  a  way  to  be  really  helpful. 

The  Buyer  as  a  Merchandizer.  Next,  the  buyer  must  be 
able  to  merchandise  according  to  plan.  Every  kind  of  busi- 
ness to-day  is  run  by  budget  based  upon  a  complete  knowl- 
edge of  all  the  factors.  Retailers  of  the  intensive  type,  such 
as  chain  stores  and  mail-order  houses,  invented  the  "mer- 
chandise plan."  Others  are  gradually  adopting  it  in  spite  of 
those  who  maintain  it  can't  be  done.  Past  performances 
serve  as  a  good  check,  but  do  not  serve  as  a  fundamental 
basis,  especially  in  such  periods  as  we  have  had  recently. 

Even  an  average  experience  of  the  past  five  or  ten  years  is 

212 


THE    BUYER   AS    A    MERCHANT 

not  a  fundamental  basis.  Nor  does  it  bring  out  the  best  in 
merchants.  It  leads  either  to  complacency  because  of  the 
ease  with  which  a  previous  record  can  be  beaten  or  resigna- 
tion because  conditions  have  changed  so  that  the  previous 
record  cannot  be  maintained. 

Merchandizing  according  to  plan  is  correct  because  it  is 
based  on  fundamental  factors.  It  is  merchandizing  based  on 
what  the  business  of  the  house  should  be  in  quality,  amount, 
and  price-ranges  rather  than  entirely  on  what  it  was  the 
preceding  year. 

Many  retailers  merchandize  according  to  plan  without 
realizing  it,  though  perhaps  not  so  accurately.  One  obstacle 
is  that  many  do  not  understand  the  fundamental  prin- 
ciples of  pricing  as  affected  by  the  net  cost  of  merchandise, 
the  conditions  of  competition,  the  turnover  possibility,  and 
the  gross  and  maintained  mark-up.  Of  course  this  is  an 
integral  element  in  the  merchandise  plan,  for  volume  de- 
pends largely  on  price.  In  such  cases  it  is  the  duty  of  the 
retailer  himself,  or  of  his  merchandise-manager,  if  he  has 
one,  to  train  his  buyers  in  connection  with  the  development 
of  a  merchandise  plan  for  each  department,  so  that  they 
understand  all  the  elements  affecting  price,  and  so  that  they 
can  handle  them  in  relative  proportions;  for  every  change  in 
mark-up  has  a  corresponding  effect  on  turnover,  and  it  is 
sometimes  a  difficult  problem  to  balance  all  the  elements  so 
as  to  bring  about  the  best  net  results  for  the  house  and  for 
the  retailer.  Always  in  this  connection  it  must  be  re- 
membered that  whatever  is  to  the  ultimate  advantage  of  the 
consumer  is  likewise  to  the  ultimate  advantage  of  the  re- 
tailer.   So  here  are  more  elements  to  consider. 

The  Buyer  as  a  Buyer.  Finally,  the  buyer  must  be  a 
good  judge  of  merchandise.  In  an  address  before  the  retail 
merchandise  managers  who  are  members  of  the  National 
Retail  Dry  Goods  Association,  in  October,  1916,  Mr.  Lew 

213 


RETAIL    BUYING 

Hahn,  editor  of  Women's  Wear,  gave  the  three  qualifications 
of  good  buying  as  follows : 

"Be  fair;  be  courteous;  be  watchful.  In  any  line  of 
business  it  does  not  pay  in  the  long  run  to  resort  to  sharp 
practices,  nor  to  be  domineering  and  discourteous,  and  many 
retail  buyers,  who  have  not  been  mindful  of  this  in  the  past, 
are  now  realizing  it  in  this  day  of  the  sellers'  market.  A 
buyer  can  be  watchful  of  the  interests  of  his  department 
and  his  house  and  still  be  fair  and  courteous." 

In  the  final  analysis  the  qualities  which  go  to  make  for 
success  in  the  buyer  or  department-manager  are  common 
to  all  business.  Take,  for  instance,  sincerity.  We  all  admire 
the  man  who  looks  us  squarely  in  the  eye,  who  believes  sin- 
cerely in  himself,  his  house,  and  his  goods,  and  who  is  a  red- 
blooded  human  being  at  the  same  time.  Then  there  is  the 
willingness  to  work  hard.  Any  man  who  isn't  willing  to  do 
the  work  his  job  calls  for,  whether  it  requires  eight  hours  a 
day  or  sixteen,  will  fail  in  spite  of  any  ability  he  may  have. 
But  that  necessitates  that  he  shall  work  advantageously 
and  economically.  Too  many  buyers  spend  half  their  time 
doing  work  which  an  eight-dollar  boy  could  do  as  well,  and 
as  a  result  have  little  time  for  planning.  They  are  doing  a 
lot  of  cheap  work  rather  than  a  lot  of  work  cheaply. 

All  of  this  discussion  leads  back  to  the  original  statement 
— that  the  function  of  a  buyer  as  a  merchant  is  to  buy  mer- 
chandise according  to  a  merchandise  plan,  to  sell  so  as  to 
make  a  satisfactory  profit,  and  to  manipulate  his  purchases 
so  as  to  secure  the  proper  number  of  turnovers  and  leave 
his  stock  in  good  condition  at  the  end  of  the  season.  This 
is  a  big  job  for  any  man,  for  merchandizing  is  a  life's  work, 
and  it  calls  for  the  best  efforts  of  a  real  merchant.  Such  a 
man  is  the  ideal  buyer. 


INDEX 


A 

Advance  buying,  62. 

Advertising  and  displays,  co-oper- 
ation in,  192. 

Advertising,  buyer's  responsibility 
in,  192. 

Advertising-manager's  responsibil- 
ity to  buyer,  192. 

Alt  man,  Benjamin,  4. 

Arrangement  of  store,  160. 

Artistic  windows  {See  Windows). 

Average  stock,  how  to  find,  136. 

B 

Backgrounds : 

individual,  198. 

in  window  displays,  197. 

mirrored,  198. 

requirements  for,  197. 

temporary,  198. 
Bankrupt  sales,  23. 
Beaver,  tests  for,  78. 
Brentano's  bookstore,  use  of  "no 

counter  plan,"  160. 
Bulletin-boards,  175. 
Business  conditions,  general,  neces- 
sity for  knowing,  12. 
Buyer: 

as  a  buyer,  213. 

as  a  merchandiser,  213. 

as  a  merchant,  211. 

as  a  salesman,  212. 

as  a  sales-manager,  212. 
Buyer,  general  quahties  of,  5. 
Buyer's  responsibihty  in  advertis- 
ing, 192. 

co-operation  in  display-work,  193, 


Buying,  beginning  the,  51. 

Buying  exchange,  18. 

Buying  market,  the  necessity  for 

knowing,  7. 
Buying  methods: 

fundamental  to  aU  retailing,  4. 

necessitj'  for  food-buying,  4. 
Buying  of  friends,  27 
Buying  practice,  41. 
Buying  process,  54. 
Buying  syndicate,  24. 


Cancellations,  63. 

Canned  fish,  determining  quahties, 

86. 
Canned  foods,  determining  quah- 
ties, 85. 
Canned  fruits,  determining  quah- 
ties, 85. 
Carmed    vegetables,    determining 

quahties,  85. 
Capital  turnover: 
definition  of,  133. 
illustration,  134 
method  of  computing,  134. 
Cartons,  how  to  keep  in  condition, 

169. 
Cereals,  determining  quahties,  86. 
Chain  store: 
buying  power  of,  102. 
comparison     with    independent 

store,  103. 
competition  of,  101. 
Chicory,     tests    for    presence    in 

coffee,  188. 
Christmas,  buying  for,  96. 
Clearance  prices,  60. 


215 


RETAIL   BUYING 


Clearance  sales,  leaders  for,  94. 
Close-outs,  23. 

Clothing — talking-points  for  sales- 
men, 177. 
Coal — talking-points  for  salesmen, 

189. 
Coffee  and  tea,  determining  quali- 
ties of,  84. 
Coffee — talking-points  for  sales- 
men, 187. 
Color  combinations,  201. 

chart  for  contrasting,  203. 
Color  harmony  in  window  displays, 

201. 
Commission  merchant,  18. 
Competition: 
analysis  of,  44. 
buying  to  meet,  97. 
chain  store,  101. 
co-operating  with,  98. 
how  to  meet  large  city  competi- 
tion, 100. 
mail-order,  103. 
necessity  for  knowing,  5. 
value  of,  97. 
Concentration  sales,  94. 
Coney,  tests  for,  78. 
Continuous  inventory: 
types   of   merchandise   adapted 

to,  147. 
stock  sheet,  and  tag  for,  147. 
system  for  specialty  shop,  152. 
Co-operation    in   advertising   and 

displays,  192. 
Cost  or  selling  price,  use  in  profit 

computations,  115. 
Costs,  know  your,  112. 
Cotton: 

description  of,  68. 
mercerized,  71. 
tests  for,  69. 
Counter  displays,  how  to  arrange, 

168. 
"Counts,"  172. 


D 


DeUveries,  58. 
Discounts : 

extra,  58. 

terms  and,  60. 


216 


Displays,  special,  208. 
Display  work: 

buyer's  co-operation,  193. 

value  of  food,  193. 
Distributing: 

agencies  for,  15. 

plan  of,  15. 


E 


Eaton,  T.,  4. 
Exclusive  agencies,  37. 

comparison      with      advertised 
brands,  39. 
Expenses,  how  to  figure,  110. 


F 


Favors  from  salesmen,  65. 
Fernley,  Thomas  A.,  115. 
Fiber,  quality  of,  71. 

tests  for,  71. 
Figuring  profit,  116. 

Percentage  of  mark-up,  119. 
Figuring  stock-turns,  methods  of, 

126. 
Fixtures  for  window  display,  208. 

how  to  keep  in  condition,  168. 

store,  155. 
Floorings,  198. 
Fox,  tests  for,  81. 
Free  deals,  58. 

Frequency  of  buying-trips,  52. 
Fruits : 

fresh,  85. 

dried,  86. 
Furniture — talking-points  for  sales- 
men, 185. 
Furs: 

buying,  83. 

classes  of,  73. 

dyed,  74. 

long-haired,  74. 

natural,  74. 

short-haired,  73. 

tests  of,  73. 

tests  of  leather,  74. 

wearing  quality  of,  81. 


INDEX 


G 

Groceries,  84. 

Gross  and  net  profit,  114. 

H 

Haberdashery,  method  of  stock- 
recording  for,  170. 

Hahn,  Lew,  214. 

Hardware,  how  to  increase  turn- 
over, 125. 

Hart,  Schaffner  &  Marx,  publi- 
cations for  salespeople,  173. 

Holidays,  buying  for,  96. 

Human  natiu-e  necessity  for  know- 
ing, 12. 


Instruction  to  salespeople,  173. 
Interior  displays,  208. 

special,  209. 
Inventory,  the,  138. 

how  to  take,  140. 

importance  of,  138. 

preparing  for,  139. 

purpose  of,  138. 

value  of  merchandise  at,  139. 


Jobber,  the: 

as  distributor,  16. 

manufacturing,  17. 

original  function  of,  16. 

semi,  17. 
"Jobs": 

finding,  91. 

handling,  90. 

K 


"Knocking,"  99. 


Leaders  for  clearance  sales,  94. 
Liggett  store,   use  of  no-counter 

plan,  160. 
Linen : 

description  of,  70. 

tests  tor,  70. 


Local  needs,  necessity  for  know- 
ing, 5. 
Lynx,  tests  for,  80. 

M 

Mail-order  houses: 

buying  methods  of,  104. 

competition  of,  103. 

retailers'  advantage  over,  106. 
Mail,  use  of,  22. 
Manufacturer,  function  of,  15. 
Manufacturer's    name,    value   of, 

30. 
Marketing  methods,  necessity  for 

knowing,  8. 
Market,  the: 

frequency  of  visiting,  52. 

preparation  for  visiting,  52. 

seeing  what  well-dressed  people 
wear,  53. 

sizing  up,  49. 

visiting  the,  49. 
Mark-up,  methods  of  figuring,  118. 

ratio,  120. 
Marshall  Field,  4. 
Marshall  Field  &  Co.,  importance 

of  store  fixtures,  156. 
Men's-wear  departments,  location 

in  store,  161. 
Merchandise : 

amount  to  be  shown  in  windows, 
199. 

necessity  for  knowing,  7. 

selection  of  kind  to  be  shown  in 
windows,  200. 
Merchandise,  branded: 

advantages  of,  29. 

comparison  with  exclusive  agen- 
cies, 37. 

definition  of,  29. 
Merchandise,  sources  of  informa- 
tion on,  190. 
Merchandise  stock-turn: 

definition  of,  130. 

how  to  figure,  130. 

illustration,  131. 
Merchandiser,  the  buyer  as  a,  212. 
Merchandising: 

definition  of,  3. 

necessity  for  good  buying,  4. 


2X7 


RETAIL    BUYING 


Merchandising  according  to  plan, 
213. 

Merchandising  plan,  43. 

Merchandising-windows  (See  Win- 
dows). 

Merchant,  the  buyer  as  a,  211. 

Methods   of   figuring  stock-turns, 
126. 

Mink: 
tests  for,  75. 
Japanese,  76. 

Muskrat,  tests  for,  76. 

N 

No-counter  idea,  159. 

advantages  of,  159. 

use  in  bargain  basements,  159. 
Novelty  brands,  36. 

how  to  buy,  37. 


O 


Odd  stock,  166. 

how  to  handle,  167. 
Open  stock,  164. 

arranging  and  handling,  165. 

filling  in,  166. 


Private   brands,    advantages   and 

disadvantages  of,  36. 
Profit,  109. 
figuring,  116. 
gross  and  net,  114. 
how  to  figure,  116. 
reasons   for  figuring  on  selling 
price,  115. 
Profits,    determining    prices    and, 

109. 
Publications  on  various  types  of 
merchandise,  190. 
manufacturers,  175. 


Q 

Qualities,  determining: 

methods  for  furs,  84. 

methods  for  groceries,  73. 

methods  for  textiles,  67. 
Quality : 

definition  of,  67. 

importance  of  ability  to  judge, 
67. 

of  fabric,  72. 

of  fibers,  71. 

of  yarns,  71. 
Quantity  prices,  58. 


Perpetual  inventory,  147. 

{See  Continuous) . 
Preparing  for  the  inventory,  139. 
examples   of   preliminary  work, 
140. 
Price,  cost  or  selling,  115. 
Price-cutting  competition,  how  to 

meet,  99. 
Prices : 

clearance,  60. 

determination  of  asking,  58. 
quantity,  58. 
Prices    and    profits,    determining, 
109. 
old  methods  of  figuring  vs.  new, 
110. 
Prices,  special,  by  clubbing  sales- 
men, 89. 
Pricing  merchandise,  119. 
basis  of,  117. 


218 


R 


Raccoon,  tests  for,  79. 
Raw  materials,  necessity  for  know- 
ing, 7. 
Receiving-rooms,     advantages    of 

having,  162. 
Reserve-stock  room: 
argument  against,  163. 
space  for,  162. 
Returns,  63. 


S 


Salesman,  19. 

as  help  to  merchant,  21. 
Salesman,  buyer  as  a,  212. 
Salespeople: 

instructions  to,  173. 

meetings  of,  174. 

personal  attention  to,  175. 


INDEX 


Sample  lines,  93. 
Sampling,  163. 
Seal: 

electric,  79. 

Hudson,  77. 

near,  79. 

selection  for  qualities,  workman- 
ship, and  finish,  57. 

styles,  colors,  and  sizes,  57. 
Selling  expense  vs.  waste,  112. 
Selling-field,  analysis  of,  43. 
SeUing-prices,  necessity  for  know- 
ing, 7. 
Shoes — how  to  handle  old  stock, 

167. 
Show-cards,  value  and  use  of,  209. 
Silk: 

and  wool,  70. 

description  of,  69. 

tests  for,  69. 
Skunk,  tests  for,  80. 
Special  displays,  209. 
Special  requests,  95. 
Specialty    shops,    continuous    in- 
ventory systems  for,  152. 
Steps  in  buying,  54. 
Stock-keeping  an  art,  166. 
Stock-keeping  systems,  154. 
Stock,  old.     {See  Old  stock.) 
Stock,  open.     (See  Open  stock.) 
Stock-recording : 

importance  of,  170. 

method  of,  170. 

systems  of,  171. 
Stock-recording  systems,  171. 
Stock,  shifting  and  examining  regu- 
larly, 140. 
Stock  systems,  121. 
Stocks,  average  methods  of  finding, 

136. 
Stock-turns: 

in  branded  merchandise,  34. 

in  department  stores,  130. 

methods  of  figuring,  126. 

store  arrangement,  160. 
Store  fixtures: 

for  up-stairs  store,  158. 

necessity  for  attractive,  155. 

should  be  adapted  to  trade,  156. 
Store  records,  necessity  for  know- 
ing, 8. 


Subdivision  of  steps  in  bujing,  55. 
Systems,  stock,  121. 


Taking     stock     during     business 

hours,  142. 
Tea — talking-points  for  salesmen, 

189. 
Teaching  points  on   merchandise, 

176. 
Terms  and  discounts,  60. 
Textiles,  67. 

Time  for  window  displays,  206. 
Trade  journals,  175. 
Trimmer,  194. 
Turnover : 

capital,  133. 

merchandise  stock,  130. 

the  importance  of,  123. 
Turnovers  in  groceries,  126. 


U 


United    Cigar    Stores    Company, 
reasons  for  the  success  of,  124. 
Up-stairs  store,  158. 


Value  of  good  displays,  193. 

of  windows,  195. 
Visiting  the  market: 

necessity  for,  24. 

time  for,  24. 

W 

Wanamaker,  John,  introduction  of 

no-counter  idea,  159. 
Want-books,  95,  166. 
Waste  vs.  selling  expense,  112. 
Window  display: 

color  harmony  in,  201. 

purpose  of,  200. 

selection  of  merchandise  to  be 
shown  in,  200. 

time-chart  for,  206. 

time  for,  206. 


219 


RETAIL  BUYING 

Windows:  Women's    ready-to-wear,    use    of 

amount   of   merchandise   to   be  continuous  inventory  in,  147. 

shown  in,  197.  Wool: 

artistic  vs.  merchandising,  196.  description  of,  68. 

backgrounds     for     display     in  test  for,  68. 

197. 

flooring  for,  198.  Y 

method  of  allocating  expenses,  Yarns: 

196.  quality  of,  71. 

value  of  display  in,  195.  tests  for,  71. 


THE   END 


UC  SOUTHERN  REGIONAL  LIBRARY  FACILITY 


AA    001018  184    0 


SOl'THfTRN    BRANCH 

vARY 

LOS   ANGELES,  CALIF. 


